The Role Of Remittance And Return Migrants On Urban Growth And Rural Urban Linkage The Case Of Hosanna

The objective of this study is to understand the remittance and returnees’ impact for growthrnand rural urban linkage together with the aim of identifying the pattern and magnitude ofrnremittance. This study was conducted in Hosanna using methodological triangulation torncollect primary data. In this regard respondents for Survey questionnaire (40 remitted 30rnreturnees and 90 non-migrants), FGD and In-Depth Interview were selected using a mix ofrnpurposive, snowball and stratified multistage cluster sampling techniques.rnThe study finding underlined that large amount of remittance is being injected in the economyrnof the town and the surrounding areas. The inflow remittance has been increasing as more andrnmore people emigrate to RSA. Although, flow pattern exhibits unevenness across seasonsrn(months) of a year, the annual figure confirmed a rapid increase of remittance both in terms ofrnthe magnitude and pattern of flow. Concerning the flow channel, the study highlighted thernexistence of informality where remittance from RSA most often reaches Ethiopia throughrnpocket of travelers.rnRegarding the impact of remittance and return migrants, this study indicated remittance andrnreturn migrants positively contributed for increase in both investment and consumption inrngeneral. Specifically the impact on housing construction, transportation sector and labourrnsupply are positively affected by remittance and returnees activities. On the contrary, thernimpact on price of products (inflated prices), inequality and dependence get worse due tornintroduction of remittance and return migrants in to Hosanna’s economy. Regarding humanrncapital formation, the health impact of remittance and returnees activity found to be positivernwhile the impact on education is remain inconclusive. This is because although remittancerninduced family migration and hence better education improved at primary education levels.rnLess positive side of story comes as remittance induced further migration of youngsters byrngiving less incentive to continue their education above secondary level. More importantlyrnremittance and returnees activities have very clear impact on Hosanna’s sprawl.rnThe study indicated that the increased income from remittance and return migrants increasedrndemand for consumption and investment, addressing this need in Hosanna obviously presumesrncreating and/or strengthening linkages between the town and the hinterland. On the otherrnhand, remittance and return migrants activity, and the asphalt road were the two main reasonsrnfor the dynamism of the town

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