Abstract:
The study was conducted on effect of social capital and participation in agricultural cooperative on rural household poverty in Abuna Gindeberet district,Oromia regional state, Ethiopia. In order to analyses effect of the social capital and participation in agricultural cooperative on rural households poverty by studying effect of participation in the agricultural cooperative and social capital on rural households poverty. The researcher was used primary sources of data from sample household heads through structured questionnaires in the study area. The studies were used descriptive and econometric data analysis method. Descriptive data analyses were employed percentage, mean, frequency and standard deviation to analysis the collected primary data from household heads. Econometric analyses were employed probit model to analyses whether invest on social capital and participate in agricultural cooperative of household heads used to alleviate household poverty in the study area. Based on the results from econometric analysis the study concludes that, the household heads with greater income, high expenditure, more participate in the agricultural cooperative and have well access of information have more improved rural household livelihood (more reduced poverty) than others. The household heads with higher social capital have improved livelihood and alleviate poverty than others. The household heads were recommended to participate in the agricultural cooperative, invest on social capital, increase their consumption expenditure and government disclose information to household heads to reduce the poverty
