Determinants Of Rural Poverty Research Articles

Trends and Determinants of Rural Poverty: A Logistic Regression Analysis of Selected Districts of Punjab

Poverty has many dimensions, like malnourishment, no shelter, being ill and not having ability to visit a doctor, no facility to go to school, unemployment, uncertainty of tomorrow, surviving only one day at a time. Poverty is losing a kid to illness due to the infected water. Powerlessness, lack of representation and freedom is another name of poverty. Poverty is of many types varying from place to place and time to time, and, has been portrayed in various manners. Poverty is the “incapability to maintain a minimum living standard anticipated with respect to basic consumption needs or some amount of income required for satisfying them [World Bank (2006)]. The bulk of the global poor are rural and will linger on thus for numerous decades. The major portion of their expenditure is generally on staple food. They have little assets such as land and others, lack of schooling and face lots of interconnecting obstacles to develop. Approximately 1.2 billion people globally expend less than a standard; “dollara- day”; and are in “dollar poverty”; 44 percent in South Asia about 24 percent each in Sub-Saharan Africa and East Asia and 32 percent in Latin America and the Caribbean. Almost 75 percent of the dollar poor lived and worked in rural areas in 2001. Projection made in 2001 suggested that 60 percent would continue to be in this state in 2005 [IFAD (2001)]. Pakistan’s population is estimated at around 155 million, and is growing at 1.9 percent per annum. Nearly 61 percent of the country’s populations live in rural areas. While 65 percent of the rural population is directly or indirectly linked with agriculture sector, it constitutes only 45 percent of their income [Pakistan (2006)]. According to the official statistics, poverty in the rural areas has gone down form 39 percent in 2001-02 to 28 percent in 2005-06. [Pakistan (2006)]. However, some studies have contradicted these contentions and argue that in contrast, the rural poverty has remained unchanged or even been trending higher over this period or at least not decreased as much as shown in official statistics. [Kemal (2003); Malik (2005); World Bank (2006); Anwar (2006)].

Extent and Determinants of Rural Poverty in Ethiopia: A Review

This review work was conducted with the objectives of reviewing recent findings on status and determinants of rural poverty in Ethiopia. Accordingly, recent research articles dealing with both extent and determinants of poverty in many rural areas of the country were reviewed. The descriptive part of the review reveals that poverty head count (p 0 ) ranged from 27.71% to 68.5%, poverty gap index (p 1 ) ranged from 7.77% to 27.9% and poverty gap index squared that indicates severity of poverty ranged from 0.042 % to 32.8%. The econometric models based analyses of the reviewed articles reveal that large family size, female headship, high dependency ratio, method of planting (broadcasting), incidences of shocks and increase in input prices had significant positive correlation with the probability of falling in to poverty. On the contrary, literacy of the household head, access to extension services, asset ownership, participation in irrigation, participation in non- farm activities, use of improved seeds, farmer training, livestock ownership (TLU), assets owned, access to credit, access to off- farm/non-farm income, vicinity to the nearest market, employment in formal sector, access to modern inputs, membership in social institutions, engagement of households in petty trading, number of oxen owned and remittance showed significant negative correlation with poverty. Improving literacy status and asset ownership of household, addressing productivity related bottle necks through the use of improved agricultural technologies as well as promoting rural non-farm businesses are the important policy instruments to opt for. Keywords: Descriptive Analysis, Determinants; Econometric Analysis, Extent, Rural poverty DOI: 10.7176/RJFA/13-5-03 Publication date: March 31 st 2022

An Investigation into the Determinants of Rural Poverty in Yobe State, Nigeria

An Investigation into the Determinants of Rural Poverty in Yobe State, Nigeria

Intensity and Determinants of Rural Poverty in Banja District of Awi Zone, Amhara National Regional State, Ethiopia

Poverty is one of the most serious problems of human deprivation and a complex phenomenon. Ethiopian government have been implementing different poverty reduction programs and strategies to fight extreme hunger and poverty. The struggle to reduce rural poverty at household level is a continuing challenge. This study was conducted in Banja district of Awi zone Amhara regional state. The specific objectives of this study were to estimate the rural poverty status, to identify factors determining rural poverty and to estimate the average exit time of poor households. In order to achieve these objectives, cross sectional data on human capital, physical capital, financial capital, natural capital and other institutional characteristics were collected from 190 households drawn from randomly selected five kebeles using structured household questioner. Descriptive and inferential statistics, and econometric model were used to analyze data on poverty status and poverty level, respectively. Hence, setting the poverty line, identifying poor and non-poor rural households, measuring the incidence, depth and severity, and mean comparison between the groups were made. Accordingly, using Cost of Basic Needs approach, the estimated poverty line was Birr 4301 per adult equivalent per year. The Foster Greer and Thorbeck measure of poverty found that 44 percent of sample households were found below poverty line and the poverty gap and poverty severity were 9 percent and 2 percent, respectively. The estimated average exit time of the poor households based on the five-year average per capita Gross Domestic Product growth rate was 3.35 years. Tobit model result showed that household size significantly and positively influence poverty whereas number of livestock and oxen ownership, educational level of the household head, input utilization, asset ownership and credit utilization negatively influenced poverty in the study area. The result suggests that improving adult education, provision of input for smallholder farmers, improving access and availability of credit, improving the livestock sector will be important policy interventions.

English

This study identifies the extent and determinants of rural poverty in southern Ethiopia, Doyogena district. The study used 150 households, using a household consumption expenditure approach by employing the FGT (Foster-Greer and Thorbecke, 1984) poverty index to determine the extent of rural poverty. The study’s result shows that the total head count index, poverty gag, and poverty severity indexes are 0.438, 0.25, and 0.1452 respectively. Moreover, based on the Binary Logistic regression model output of sample households, there is a significant difference in the poverty level among the poor and non-poor sampled households in terms of factors such as the size of cultivated land, remittances, dependency ratio, participation on off-farm activities, livestock ownership and use of improved seeds were significant up to10% probability level. Whereas, the age, education, and sex of sampled household heads access to extension service and credit service were not statistically significant. The finding reveals that most of the non-poor households are engaged in more than one livelihood options. On the other hand, income diversification can contribute a certain percentage to help poor households escape extern poverty and Non-agriculture sector should be developed to diversify the income sources of poor households. Key words: Determinant, extents, rural poverty, binary logistic model.

Determinants of Rural Poverty: An Empirical Study of Socio-Economic Factors in Jharkhand, India

In India, poverty reduction is one of the major objectives of economic development programmes. Though, India was the first country in the world to define poverty as the total per capita expenditure of the lowest expenditure class, which is required to ascertain a minimum intake of 2400 kcal/day in rural and 2100 kcal/day in urban areas. The same is converted into financial terms and the poverty line is defined as a minimum level of income or expenditure, which is periodically updated. The latest updated poverty line is Rs.356.30 in rural areas and Rs.538.60 in urban areas in 2004-05 (Planning Commission, 2007). There exists a substantial interstate and urban rural differential in the cost of goods and services. One in three Indians lives below the poverty line according to the Tendulkar Committee report which used a measurement of goods and services, rather than calorie intake, to calculate poverty. The World Bank estimates that 80% of India's population lives on less than $2 a day which means a higher proportion of its population lives on less than $2 per day as compared with sub-Saharan Africa. Income based approaches to poverty can not tell more about other forms of deprivations poor go through. Poverty is basically a denial of a range of material needs such as nutritious food, safe drinking water, shelter, healthcare, education, etc. Therefore, multidimensional poverty measures provide better understanding of the nature of poverty-at local, regional, national, and world level. The present study attempts to track and explore some of the important causes of rural poverty in the state of Jharkhand. Socio-economic indicators provide a background to understanding the poverty scenario in a country. These indicators provide data on education, gender, poverty, housing, amenities, employment and other economic indicators. These indicators for the country as well as states will help in identifying the linkages between socio-economic indicators and achievement of health goals. It was found that the rate of decline in poverty is more in agricultural labour class households (27%) than that of farming households (1.9%). Analysis of household data of the sample villages also highlights a high incidence of rural poverty ranging from more than 20 percent in Dubaliya to about 76 percent in Durgapur. Incidence of poverty for four groups of households viz. labour, small, medium and large shows mixed pattern of incidence of poverty. Labour class households and large households were comparatively less poor in most of the villages than that of the other classes i.e., small and medium households. Among various determinants of poverty, obtained by estimating a probit model, considering poor as 1 and non-poor 0, it was found that length of education and number of earning members in family had significant poverty reducing effect, implying that for taking a poor household out of poverty promotion of education and creation of more employment opportunities to provide employment to a large number of household members are essential. It also emanates that big family size and increased dependency on agriculture would induce poverty and it is therefore imperative that family planning policies and alternative non-farm employment programme should receive due priority in any poverty alleviation programme in the state.

INCOME PATTERNS AND DETERMINANTS OF RURAL POVERTY IN TWO DISTRICTS OF SINDH.

This research explores income patterns and determinants of rural poverty in Sindh province. The Data were collected from 300 households from two districts i.e. Khairpur, and Thatta of Sindh Pakistan by using the simple random technique; a structural questionnaire was design as an instrument tool for measuring the poverty determinants and income patterns. The households are classified into three groups i.e. A, B and C. Group A and B are below subsistence holding and group C is related to subsistence holding and, all the households were engaged in farm production . It was revealed that the average size of farm A group is 7.2 acres but the grower cultivates average area 4.5 acres and the remaining 2.7 acres are not cultivated by them due to deficiency of water. In the same way, the grower of group B cultivates 7.475 acres instead of 11.5 acres and grower of C group cultivates 16.56 acres in place of 27.6 acres. The surveyed data of district Khairpur describes that the average size of farm of group A is 7.47 acres but each grower average cultivates 4.78 acres and the remaining 2.69 acres are uncultivated. Similarly, the grower of B group cultivates 7.462 acres instead of 11.9 acres and the grower of C group brings 17.4 acres under cultivation in place of 29 acres. The surveyed data of both districts clearly indicate that the income of all growers is low because they do not bring all land under cultivation. The surveyed data has further pointed out that 50% households are below the official poverty line, 33.33% households are just above poverty line and 16.67% well above official poverty line. The group C is in a better position to provide health, education etc facilities to their family members.

Magnitude and Determinants of Rural Poverty in Zeghe Peninsula, Ethiopia

The article examines the magnitude and determinants of rural poverty at Zeghe Peninsula. It is done based on the dimension of poverty expressed in terms of consumption expenditure. Data were collected through questionnaire survey from 200 sample households. The Foster-Greer-Thorbeck (FGT) measure of intensity of poverty and the logit model were used. FGT is composed of additively decomposable poverty indices of incidence, depth and severity. Based on the FGT result, 68.5% are poor, and 18.7% constitutes the poorest of the poor in the Peninsula (i.e., severity). The percentage shortfall of consumption expenditure of the poor from the poverty line (i.e., depth) is 32.8%. From the logit model, variables like large land holding size, better suitability of land for coffee production, participation of households in contractual farming activities, engagement of households in petty trading, beekeeping and fishing activities decreased the probability of households to be poor. High dependency ratio and participation of households in firewood-selling activities increased the chance of households to fall into poverty. This implies that any development endeavor that aims at improving the welfare of people of the Peninsula should focus on these correlates of poverty.

The Impact of Socioeconomic and Demographic Variables on Poverty: A Village Study

Poverty is a complex phenomenon based on a network of interlocking economic, social, political, and demographic factors. An understanding of the extent, nature, and determinants of rural poverty is a precondition for effective public policy to reduce poverty in rural Pakistan. The present study attempts to analyze the impact of socioeconomic and demographic characteristics of households on poverty, using primary data collected in the village of Betti Nala in Tehsil Jatoi, district Muzaffargarh in southern Punjab. We have used two distinct approaches: (i) a poverty profile, and (ii) an econometric approach in our empirical analysis. The results show that household size, dependency on household, participation, landholdings, and number of livestock have a significant impact on poverty incidence. Our final conclusion is that efforts should be made to improve socioeconomic factors in general and demographic factors in particular to alleviate rural poverty in remote areas of Pakistan, while land should be allotted to landless households.

Determinants of Rural Poverty in Africa: The Case of Small Holder Farmers in Kenya

Determinants of Rural Poverty in Africa: The Case of Small Holder Farmers in Kenya

Determinants of Rural Poverty in Post-War Mozambique: Evidence from a Household Survey and Implications for Government and Donor Policy

This paper analyses the welfare effects of rural household coping strategies in post-war Mozambique. In addition, it considers appropriate government and donor policies to assist poor, war-affected farm households. The paper discusses the expected theoretical effects of war on smallholder labour, asset, and social capital endowments and thus on household welfare. In addition, it considers the effects of war on land use and market-participation decisions by households and the impact of these choices on post-war household welfare. Household welfare is measured by income, consumption, and food consumption thus assessing several dimensions of welfare. The empirical analysis is carried out using econometric techniques on an agricultural household survey from post-war northern Mozambique. The war in Mozambique, which ended in 1992, is found to be a strong cause of these poverty traps, ie of economic mechanisms which prevent poor rural farmers from increasing income and food security. The main effects of the war are indirect rather than direct. For example, refugee households do not appear to poorer than non-refugee households. The negative war effects are very difficult to reverse thus making post-war reconstruction and poverty alleviation much slower than expected. Almost nine years after the end of the war in Mozambique, post-war reconstruction and poverty alleviation in northern Mozambique is thus on-going process. Quite surprisingly, increasing the area farmed by smallholders has very strong the positive welfare effects. Previous empirical studies for Mozambique under-estimated the sign of this effect. In addition, post-war farm households do not benefit from adopting cotton. Past studies of the welfare effects of cash crop adoption in Mozambique may have found conflicting evidence due to the particular specification of their econometric models. Households do clearly benefit from specialising in agricultural production and from participating in crop markets. This evidence suggests that farm households should be encouraged to continue their war-time coping strategies, which rely heavily on extreme form of subsistence agriculture, in the immediate post-war period. With a favourable security situation, post-war rural households have a labour supply surplus which can be used to extend the area cultivated. Household asset endowments were badly hit by the war and re-endowing households with tools and assets can help increase this agricultural supply response and can help insure households against short-term income shortfalls. In the immediate post-war period, rural households are likely to have a low demand for education. Instead, government and donor policies should aim to create markets destroyed by the war and lower transaction costs in the rural economy. Broadly based rural development policies should commence soon after the end of the fighting to increase both household income and food security and to avoid imbalanced rural growth. Preparing government capacity to implement such post-war rural development programme should start before the end of a conflict, thus accelerating genuine post-war poverty alleviation.

Poverty and Inequality in The Soeharto Era: An Assessment

This paper surveys the evidence on trends in poverty and inequality during the years of Soeharto's presidency. That Indonesia saw a decline in the incidence of poverty, and improvements in other welfare indicators such as infant mortality rates and literacy rates over these years, seems indisputable. Comparative studies show that by the latter part of the 1980s, the headcount measure of poverty in Indonesia was below that in the Philippines although above that in Malaysia and Thailand. But relative poverty has declined more slowly, and indeed increased in some urban areas between 1987 and 1996. The paper also examines evidence on the determinants of rural poverty in Indonesia in 1993, and suggests that rural development programs targeted to the specific needs of poor people in poor areas will be essential if rural poverty is to be further reduced in future years.

Public Intervention and Poverty Alleviation: A Study of the Declining Incidence of Rural Poverty in Kerala, India

ABSTRACTIn the context of the continuing and lively debate on the estimates, trends and determinants of rural poverty in India, this article examines the sharp decline, since the late 1970s, in the incidence of rural poverty in the state of Kerala, well known for its record of social development. It is argued that, given the slow rate of growth of the Kerala economy in general and agriculture in particular since the mid‐1970s, the ‘trickle down’ theory cannot explain the decline in poverty. Similarly, the fact that rural wages have increased faster than the consumer price index does not constitute a sufficient condition for crossing the poverty line. Expansion of state‐directed programmes is seen to be the single most important determinant in reducing rural poverty. The effect of public intervention programmes is roughly estimated to be equal to one fifth of the consumption of rural labour households. The lesson of Kerala for poverty alleviation is that social protection expressed in terms of meeting the basic consumption requirements of the poor, especially the vulnerable among the poor, should be a necessary component of development policy. However, this is not a sufficient condition: there should also be a growth strategy which would provide adequate employment to all members of the labour force from the poorer sections of the population. The current line of official thinking in India, in the context of economic liberalization, is hardly conducive to such a strategy.

Food Security and Health Security: Explaining the Levels of Nutritional Status in Pakistan

Food security and health security: Explaining the levels of nutritional status in Pakistan , Food security and health security: Explaining the levels of nutritional status in Pakistan , مرکز فناوری اطلاعات و اطلاع رسانی کشاورزی

Measurement and determinants of rural poverty: Household consumption patterns and food poverty in rural Sudan

A logit model and Engel curves are used to study the determinants of food poverty and composition of household consumption among the tenant farmers of the Rahad Scheme in Sudan where land is equally distributed. The data support the permanent income hypothesis, whereas Engel's assumption of declining food shares with increased total spending did not hold for the present sample. The logit analysis provides strong evidence for the important influences of better access to productive assets other than land, smallersized families, higher non-farm earnings and farming experience on reducing the probability of food poverty on the scheme. Policies directed towards the provision of better family planning, education, extension, increased on and off-farm employment and improved infrastructure for higher labour mobility can make for effective poverty alleviation programmes in this sector.

Human Capital, Economic Development, and the Rural Poor: Discussion

It is a pleasure for me to comment on the two papers presented: one by Allen and Thompson (Rural Poverty Among Racial and Ethnic Minorities) and the other by Christy and Figueroa (The Impacts of Structural Change and Public Policy on the Economic Well Being of the Rural Disadvantaged). Both papers complement each other nicely by focusing on the often neglected disadvantaged populations in rural America and the possible correlates or determinants of rural poverty. They also bring to light much needed information on rural African-Americans and