Abstract
Poverty is a multi-faced problem in the developing world and it is much more complex in rural settings. Hence, policy formulation based on national level studies sometimes fails to find remedies of rural poverty. Thus, the present study aims to identify the determinants of poverty in rural Bangladesh using the nationally representative Household Income and Expenditure Survey (HIES) 2010 data. The HIES follows a hierarchical structure hence, two-level random intercept binary logistic regression models were used to capture the unobserved heterogeneity between communities along with revealing important factors associated with poverty. The analyses found that 32% of the households were absolute poor and 19% were extremely poor in rural Bangladesh. The potential factors having significant association with poverty were found to be age and education of household head, division, household size, household types, number of dependents, per capita income, household own land, access to electricity, amount of cultivable land, engagement in livestock and farm forestry, household non-agricultural assets, number of male earner and number of female earner in the family. Significant community-level variations were observed in the analyses which emphasis the need for special attention on the poor performing communities. Specific policy recommendations have been suggested for the poverty alleviation of rural households in Bangladesh.J. Bangladesh Agril. Univ. 16(1): 123-130, April 2018
Highlights
Poverty remains a global concern for the last few decades
Determinants of extremely poverty (LPL) Table 1 represents the significant determinants of poverty based on lower poverty line (LPL) in rural Bangladesh
This study investigated the determinants of poverty among rural households in Bangladesh using a nationally representative Household Income and Expenditure Survey (HIES) 2010 dataset
Summary
Poverty remains a global concern for the last few decades. It’s nature and dimension are much complex in rural areas. Majority of the poor live in rural areas and mainly depend on agriculture. About 76% of the developing world’s poor live in rural areas, well above the overall world population share living in rural areas, which is only 58% (Ravallion et al, 2007;World Bank, 2014). A study conducted by Thapa (2004) reveals that about 40% of the world’s poor live in South Asia, where poverty is mostly a rural crisis. In Pakistan, the incidence of poverty in urban areas is 9.3%whereas in rural areas it is 54.6% (Alkire, 2016).More alarmingly, in a developing country like Bangladesh, the prevalence of poverty is a persistent problem. According to HIES (2010), the incidence of poverty in national, urban and rural areas were 31.5%, 21.3% and 35.2% respectively
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