Abstract:
Rural-urban linkages are an integral part of fostering development in both urban and rural
communities. Rural and urban areas are economically, socially, and environmentally
interlinked spaces. Urban and rural areas differ in economic, social and environmental terms.
Due to the diverging dynamics in urban and rural areas, the social and economic distance
between them might increase in the future even more. The purpose of this study was, therefore,
to identify challenges and opportunities of RUL in Mulo district. The study used both primary
and secondary data to achieve the objectives. The primary data were obtained from 167 sample
respondents and a two stage-sampling technique was used. Descriptive statistics and ordered
logit model were employed for analyzing the data. This study explores some of the challenges
to strengthening rural-urban linkages for local economic development in the Mulo district of
Oromia Region, Ethiopia. Participants were selected from farmers, traders, and government
officials using a multistage sampling technique. Results of Ordered Logit model indicated that
age, level of education, access to information, non-farm activities, participation in social
organizations and access to credit affected rural urban interlinkage (RUL) significantly.
Despite the enabling policy of the government to facilitate rural-urban linkages, the linkages in
the district remain weak as far as their capacity to improve the overall local economies. The
study, recommended that investments in rural feeder roads, improved provision of rural
microfinance and access to market information, and ensuring affordable agricultural inputs
would improve rural urban linkages and thus lead to stronger local economic development
