ECONOMIC IMPACT OF PASTORALIST WOMEN PARTICIPATION IN ALOE VERA SOAP PRODUCTION IN YABELLO WOREDA, BORANA ZONE OF OROMIA, ETHIOPIA

Abstract

Commercial opportunity for indigenous Aloe Vera products appear to be increasing as there is a sustained demand from international as well as African market with high participation of women. However, its economic impact on the livelihood of household is not yet addressed. Therefore, this study evaluated the economic impact of pastoralist women participation in Aloe Vera soap production in Yabello woreda, Borana zone of Oromia, Ethiopia. Both primary and secondary data were collected from 200 sample households using semi-structured questionnaire. To analyze the data both propensity score matching with logit model, and multiple linear regression models were applied. The logistic regression estimation revealed that age at married, age, family size, training and access to credit are found positive and significant whereas membership in other cooperatives and distance to nearest market have negative and significant effect on the participation of women in Aloe Vera soap production. The propensity score matching was applied under assumption of common support and conditional independence assumption. In the matching processes, kernel band width (0.25) matching was found to be the best matching algorithm. This model was checked for covariate balancing with t-test, standardized bias and joint significance level tests. Moreover, sensitivity analysis of the estimated participation effect to unobserved selection bias was checked using the Rosenbaum bounds method. Finally, results show that participation of women in Aloe Vera soap production has a significant and positive impact on household income and women empowerment. The propensity score matching also indicates average treatment effect on treated income is 45.693 Birr, and average treatment effect on treated cumulative empowerment index result is 1.51 units. Result of sensitivity analysis further shows that the estimated effects are insensitive to unobserved selection bias within gamma level used. Thus, Aloe Vera soap production and women economic empowerment should be encouraged for the pastoralist social wellbeing.