Livelihood Diversification and Income Effect of Refugees on Host Community: Evidence from Southwest Ethiopia

International migration and the burden of refugees have become pressing global concerns, particularly in developing countries. Ethiopia, as one of Africa’s largest hosts of international migrants, faces challenges and opportunities posed by refugee presence. This study investigates the impacts of refugees on livelihood diversification and household income in Gambella, southwest Ethiopia. A stratified sampling method identified 200 households based on proximity to refugee camps. Binary logistic regression and propensity score matching were employed for analysis. Results indicate significant negative effects on rural household income, with losses estimated at -105,945.73 ETB. This research underscores the need for tailored livelihood strategies and further exploration of refugee impacts on host community well-being.