A THESIS SUBMITED TO THE DEPARTMENT OF ECONOMICS IN PARTIAL FULFILMENT OF THE REQUIRMENT OF MASTERS OF ART (MA) DEGREE IN DEVELOPMENT ECONOMICS

Abstract

Focusing on women’s empowerment in Arbaminch town is crucial due to the unique socio economic challenges and opportunities faced by women in this region. The local context, including traditional gender roles and economic conditions, provides a distinct backdrop for assessing the impact of microfinance programs and other empowerment initiatives. By examining how factors such as income control, education, and access to financial resources influence women's empowerment in Arbaminch, this study aims to generate actionable insights that can inform targeted policies and programs, ultimately contributing to the broader goal of improving gender equality and community development in similar settings. This study evaluates the impact of Vision Fund microfinance on women's empowerment in Arbaminch town, southern Ethiopia. Using quantitative data, a sample of 256 women was selected through systematic random sampling and analyzed using binary logistic regression. Key findings indicate that marital status, income control, and house ownership are strongly positively associated with borrowing status and women's empowerment, with high statistical significance. Conversely, age and family affairs show minimal impact. Female education, partner education, and family size exhibit marginal significance. Descriptive analysis highlights that economic factors, particularly income and asset ownership, are crucial for women's empowerment, while traditional financial practices also play a role. Chi-square tests reveal significant associations between borrowing status and various empowerment indicators, emphasizing the interconnectedness of financial behaviors and empowerment. T-tests and treatment-effect models further confirm that higher levels of empowerment significantly correlate with increased borrowing status. Overall, the study underscores the importance of economic opportunities and decision-making power in enhancing women's empowerment, advocating for targeted interventions in these areas.