Poverty Gap Research Articles

Remittance and its Effect on Poverty and Inequality: A Case of Nepal

This paper examines the impact of remittance on poverty and income inequality in the context of Nepal using cross-sectional national survey- Nepal Living Standard Survey, third edition (NLSS3) of 2010-11. We employ a Heckman two-step estimation model with instrumental variables and constructed counterfactual income to investigate the real impact of remittances. We find that remittance has helped in the reduction of poverty ratio by 5.3% but deepened the poverty gap by 7.37% and severity by 9.25%. In terms of inequality, remittance has helped to reduce inequality within the remittance receiving group, however, it also contributed to rising income inequality when compared to non- remittance receiving group.

Exploring the Socioeconomic Impact of Riverbank Erosion in the Brahmaputra Valley of Assam, India: A Case Study of Two Districts

This paper explores the socioeconomic impact of riverbank erosion and measures the incidence and severity of poverty among the riverbank inhabitants of Assam, India. Primary data from two erosion effected districts of Assam have been collected using multistage random sampling technique. To measure the incidence of Poverty among the riverbank inhabitants, Head Count Ratio (HCR) method has been used. Severity of poverty is measured using Poverty Gap Index (PGI). The results reveal that the level of poverty and the severity of poverty are related with the degree of erosion. Similarly, the migration (both short-term and long-term) also related with the degree of erosion. It has also found that various types of socioeconomic issues arise due to riverbank erosion, such as loss of cropland and livestock, education and transportation problem, social displacement, etc. An important fact observed is that the problem of migration and poverty also exist in the non-eroded villages. For which, it cannot be say that migration issue arise only because of riverbank erosion. But, riverbank erosion pushes the other problems to more vulnerable situation which compels the affected people to take their decision. Therefore, riverbank erosion may be considered as a cause of migration and poverty in the study areas. In this context the paper recommends that with the erosion control measures, the policies such as resettlement, financial support and social safety nets should be implemented in the erosion affected areas to reduce poverty as well as to reduce outmigration.

Status and determinants of poverty among women-owned micro-businesses in Wolaita zone, southern Ethiopia

PurposeMicro-businesses contribute to economic development by improving individual welfare. Women are the primary drivers and owners of such businesses in urban Ethiopia. The purpose of this study is to investigate the poverty status and determinants among women-owned micro-businesses.Design/methodology/approachThe basic study units were women who owned micro-businesses. A sample of 384 women-owned micro-business was chosen using a stratified and systematic random sampling technique. Thirty-six participants were purposely chosen for in-depth interviews and focus group discussions. Questionnaires, in-depth interviews and focus group discussions were used to collect data. The poverty head count, poverty gap and poverty severity indices were computed to estimate poverty status. The major determinants of women’s poverty were investigated using a logistic regression model.FindingsThe overall poverty incidence, gap and severity were estimated to be 24.27%, 3.85%, and 1.11% respectively, among the women who owned micro-businesses. Eight of the 14 poverty determinants, including age, dependents, savings, remittance and the number of days and hours women work in their businesses, were found to have a significant effect on women’s poverty. The results suggest that local governments, technical and vocational training institutions should work together to reduce the impact of poverty-aggravating factors on women and increase the contribution of women-owned micro-businesses to poverty reduction.Originality/valueThis study addressed the poverty status of women who run micro-businesses, which is a crucial issue in Ethiopia’s urban context. It adds new knowledge to the issue of gendered economic participation, poverty reduction and poverty determinants in the Ethiopian context.

Evaluating Poverty Indicators among Government-Supported Households: A Multidimensional Approach

Introduction: Poverty is an undesirable socio-economic phenomenon that endangers the political stability, social solidarity, and mental health of the different sections of society. The literature on poverty in recent years has not been limited to income poverty, but also to other aspects such as health, education, and living standards. By identifying patterns of poverty, instead of prejudging the suitable economic and social policies to combat poverty, we can explain the appropriate and effective policy on poverty at the community level in accordance with the nature of these patterns. Method: In the present study, with a multidimensional approach to poverty (including educational poverty, housing poverty, food poverty, health, and income poverty), the vulnerability of government-supported households in Iran were investigated. For this purpose, the expenditure information of government-supported households in 2017 was the basis of the study. Findings: The results showed that nearly 47% of the households surveyed are below the food poverty line. In terms of depth and quality of dominance of different dimensions of poverty among the studied households, housing poverty has the largest poverty gap, followed by education poverty with a poverty gap of nearly 40%. In summary, the poverty gap in income and health dimensions in this study is very low compared to the mentioned dimensions. In general, it was found that government-sponsored households, in addition to income poverty, also suffer from poor health, housing, education, and food poverty. Discussion: Based on the findings, it is suggested that policy makers adopt and formulate policy-support tools in which the various dimensions of poverty are considered in the form of a comprehensive system.

Development of multidimensional water poverty in the Yangtze River Economic Belt, China

As a basic natural and strategic resource, water is of great significance to the sustainable development of economies and societies. Owing to population growth, industrialization, the acceleration of urbanization, and global warming, water poverty is gradually increasing in some parts of the world. Effectively assessing water poverty from different dimensions is still a serious challenge for global water resources planning. This paper establishes a framework of multidimensional water poverty (MWP) from six dimensions: water management, water technology, water assets, water welfare, water resources, and water environment. The measurement model of MWP is built based on the Back Propagation Neural Network (BPNN), and the Spatial Correlation Analysis tool is used to visualize the spatial effects of MWP. The Yangtze River Economic Belt (YREB) was used as a case study and the main factors affecting the MWP of the YREB were determined by the Geodetector. When analyzing the results the following observations were made: (1) In terms of time distribution, the level of MWP in the YREB has gradually increased, and the poverty gap between the upper reaches, as well as the middle and lower reaches, shows an increasing trend. (2) With respect to spatial distribution, there is a continuously increasing agglomeration effect that shows a gradient-increasing distribution pattern of “West-Central-East.” (3) The MWP in the YREB is mainly affected by these indicators in the three dimensions consisting of water resources, water technology, and water management. Specifically, R&D expenditure as a percentage of GDP, the proportion of water-saving irrigation area in the cultivable land area, the urban daily wastewater treatment capacity, the land surface water resources per capita, and the groundwater resources per capita play an important role in the MWP. Based on the above findings, targeted policy recommendations are proposed to alleviate the MWP in the YREB.

Child Support Grant Policy and Poverty Alleviation: Is there a link in Mamelodi Township, Gauteng Province

When governments around the world engage in public policy-making, quite often, the public officials and policy-makers are faced with discreet opposition from non-government organisations trade unions and civil societies. The public policymakers usually go ahead with the implementation of the suggested policy. For example, in South Africa (SA), Child Support Grant (CSG) was implemented in an attempt to alleviate poverty. This can be attributed to many factors, such as urgency in addressing the poverty gap in society and lack of interest from the members of the public in public policy-making. Based on capability and social security approach/strategy and rational approach, this study explores an outcomes-based evaluation of the CSG policy and its relationship with poverty alleviation in Mamelodi Township, Gauteng Province, SA. The empirical results indicate that there is a linkage or relationship between the reduction of poverty levels and the implementation of the CSG policy in Mamelodi Town. Keywords: Child Support Grant, Mamelodi, Poverty, Outcome-based Evaluation

Pengukuran Kinerja Pengelolaan Zakat Nasional menggunakan Indeks Zakat Nasional (IZN) 2.0 dan Dampaknya terhadap Pengentasan Kemiskinan di Indonesia Periode 2021

The study aims to measure the performance of national zakat management and its impact on poverty alleviation in Indonesia for the 2021 period. National Zakat Index (N.Z.I.) 2.0, formed based on macro and micro dimensions, is used to measure the performance of national zakat management. The General Poverty Index (GPI), with headcount index, income gap ratio, poverty gap, sen index, and F.G.T. index, and the B.A.Z.N.A.S. Welfare Index (B.W.I.), with indicators of the poverty line, had kifayah. Nisab zakat is used to measure the impact of zakat management on poverty alleviation in Indonesia for the 2021 period. The result show (1) The performance of the national zakat management for the 2021 period is considered very good, with an N.Z.I. value of 0,88. (2) Based on the GPI and B.W.I. indicators, the management of national zakat in the distribution sector has been able to improve the welfare of mustahik and alleviate poverty in Indonesia for the 2021 period

Strategic Area Development to Reduce Poverty and Regional Gaps in The District

Developing strategic areas utilizing existing potential will increase regional economic growth, overcome regional disparities, and reduce poverty. This study aims to determine the efficiency of district strategic area development in reducing regional disparities and poverty rates in Dharmasraya Regency for the 2016-2020 period. The results of the Data Envelopment Analysis (DEA) analysis, using the assumption that input changes are directly proportional to changes in output, show mixed results. Efficiency calculations show that investment, infrastructure, and business empowerment significantly reduce poverty and regional disparities in Dharmasraya Regency. This condition shows that developing strategic district areas can reduce regional disparities and poverty rates in Dharmasraya Regency. This research implies that it can assist the government in reducing poverty in Dharmasraya Regency by allocating funds for industrial development, expanding investment, and providing financial assistance for developing community-based creative businesses. If appropriately implemented, poverty in Dharmasraya Regency will be reduced.How to Cite:Guswandi. (2022). Strategic Area Development to Reduce Poverty and Regional Gaps in The District. Signifikan: Jurnal Ilmu Ekonomi, 11(2), 319-338. https://doi.org/10.15408/sjie.v11i2.25895.JEL Classification: R11, R58, L1

Effect of Resource Productivity of Maize-Based Farmers on Poverty Reduction in South West, Nigeria

The ability of Nigerian agriculture to perform its role in the development of the economy has been on the decline in the last three decades. Therefore, the 2030 Agenda’s historic commitment to rid the world of the twin scourges of poverty and hunger cannot become a reality if nothing is done about improving resource productivity so as to reduce poverty. This article examined the effect of resource productivity of maize-based farmers on poverty reduction in South-West, Nigeria. Multi-stage sampling procedure was used to select 180 respondents and data were collected with the aid of a structured questionnaire. The stochastic frontier production function, poverty index and probit regression model were used to analyze data from the study. Results showed that age, farming experience, cooperative membership, credit, extension visits, farm distance, and land ownership were significant determinants of efficiency of maize-based farmers. The poverty incidence, poverty gap and poverty severity were 42%, 50% and 11.2% respectively. Results further showed that efficiency and other variables were significant determinants of poverty among respondents in the study area. Policies that facilitate increased production of maize, increased level of education, increased cooperative membership, and access to credit are essential to help reducing poverty among maize-based farmers and among the rural poor in general. Keywords: Maize-based farmers; Poverty; Probit regression; Resource-productivity, Stochastic frontier analysis. DOI: 10.7176/JESD/13-20-09 Publication date: October 31 st 2022

The Poverty and Its Implications among the South Sudanese Refugees in Uganda

Uganda is one of the countries out of 54 countries in the African Union (AU). It borders Rwanda in the Southwest, Tanzania in the South, Kenya in the east, South Sudan in the north, and the Democratic Republic of Congo (DRC) in the west. Uganda is still suffering from poverty despite many struggles to fight it. Uganda is hosting South Sudan refugees of about 1.5 million people who fled the country due to 2013 and 2016 political wrangling over the leadership among South Sudanese leaders. Most of the displaced people fled and crossed to Uganda, seeking protection as a refugee in northern Uganda. The majority of the refugees were women and children. The districts occupied are Adjumani, Moyo, and Arua in northern Uganda, respectively. Being homeless they had to rely on a ratio that was insufficient to cater to the family.It is not that straightforward to measure the level or degree of poverty. According to Anna Miller (2013), measuring poverty among refugees requires long periods. If we were to count all people below a certain poverty line at a particular time, we would know only half of the story behind those poor. Someone can fall below the poverty line in one period but climb above it in the next. On the other hand, someone can be persistently below the poverty line. Therefore, it is not enough to take only one snapshot of the scenario. One has to take into account that people can be either chronically or transiently poor and that there are a lot of movements in and out of poverty.According to the World Bank collection of development indicators, compiled from officially recognized sources, Uganda - Poverty gap at $1.25 a day (PPP) - actual values, historical data, forecasts, and projections were sourced from the World Bank in July 2022.

Analysis of Social Care Character Development in Islamic Religious Education Courses

The development of an increasingly modern era, on the one hand, progresses in various aspects of human life, but on the other hand also brings to the character and identity of the Indonesian nation, the waning of a sense of caring and social solidarity. Now egocentrism in the pattern of social relations in Indonesian society is increasingly visible, namely behavior that focuses on one's own welfare or gain at the expense of and at the expense of others. The development of social care characters must continue to be carried out, especially now that people's lives are increasingly difficult, the poverty gap is widening, and the crime rate is getting higher. Judging from the religious aspect, the attitude of social care will get 3 things, namely first, the road of sustenance becomes wide and open; second, being more sensitive to the life around us; third, get a reward. This study is a descriptive study to see the extent to which the development of social care characters in PAI courses. The data collection technique is using a questionnaire. The research was conducted in several departments at Medan State University in the even semester of the 2021-2022 Academic Year. This study resulted in the following findings: 1. the development of social care characters in PAI courses has only reached aspects of knowledge (cognitive) and attitudes (attitudes). This can be seen from the development of social care characters in both aspects which are already in the good category. 2. The development of social care characters from the behavioral aspect (behavior) in PAI courses is still in the poor category, for that it is necessary to design various social action tasks in the community that are carried out by students so that they will get a very meaningful experience.

Effect of targeted fertiliser subsidy on poverty reduction in Togo

The reintroduction of innovative forms of input subsidies in sub-Saharan Africa (SSA) following the food crisis of 2008 raises concerns about their effectiveness in the fight against poverty. In this context, this paper examines the effect of the targeted fertiliser subsidy implemented in Togo from 2017 to 2019. For this purpose, the propensity score matching and instrumental variables regression approaches were used to control for potential selection and endogeneity bias. Nationwide crosssectional survey data covering 2 319 smallholder farmers in Togo suggests that participation in the targeted fertiliser subsidy programme significantly improved beneficiaries’ poverty status through increased income, leading to a decline in poverty incidence, gap and severity. However, the magnitude of the effect is very small compared to that in some other West African countries. Therefore, to enhance the effect of targeted subsidy policy on income and poverty status, there is a need to improve the rate and composition of the subsidy.

Development of Hybrid Model for Donations to Deserving Donees Using Multi-Polar Interval-Valued Neutrosophic Soft Set

Multicriteria decision-making techniques have been used widely in intelligent decision support systems for many executive decisions. Nongovernment organizations (NGOs), Non-Profitable Organizations (NPOs), and privileged persons employ survey methods to obtain deserving people’s data for charity donations under United Nations poverty alleviation initiatives, for example, financial assistance. They collect data manually or semi-automated, then narrow down the list of deserving recipients based on specific criteria. That usually results in a list of recipients who either don’t deserve it or, if they do, aren’t the perfect fit. Furthermore, the final recommendations of NGOs and NPOs partially address the poverty disparity and position all of them are on same level, resulting in the less justified distribution of charity. Due to the simultaneous evaluation of several characteristics. This paper formulates the problem of distributing funds to deserving peoples as a multicriteria decision-making problem to address these concerns. A Multipolar Interval-Valued Neutrosophic Soft Set (mIVNS) is used to address the issue of selecting suitable candidates for financial aid and distribution of funds. To implement the proposed methodology, a sample of 5 distinct deserving attributes is considered according to their intensity of poverty gap for allocation of funds. By using distance-based similarity measures, the technique of mIVNS sets has been used to select candidates and distribute funds. This methodology supports the management of NPOs and NGOs, and privileged individuals to disburse financial aid in deserving families according to their needs better.

Poverty status of rural households in Nigeria: a gendered perspective

PurposePoverty is endemic in rural Nigeria and gender disparity in access to productive resources is a major cause of poverty in the area. Poverty status of rural households along gender line was, therefore, investigated in this study.Design/methodology/approachPanel data from 2010/2011 (wave 1) and 2015/2016 (wave 3) of the Living Standard Measurement Survey (LSMS) for Nigeria were used for the study. Data were analysed using Foster, Greer and Thorbecke (FGT) poverty indices and binomial panel logistic model.FindingsPoverty measures for women-led households in farming activities were 58.5, 27.8 and 17.1%; men-led farming households had 59.8, 27.4 and 16.3% gender-neutral had 56.8%, 27 and 16.9% in the first panel. Poverty indices increased in the women-led and men-led farming households in the second panel. Poverty incidence was higher amongst farming households than the non-farming counterparts. Correlates of poverty status differ amongst the gender-groups were household size, farming, tertiary education, access to credit and geographical locations.Originality/valueGender disparity is perceived in this study along the line of differences in gender composition of rural households. A gender-blind approach to poverty alleviation programmes likely will not enhance reduced poverty in rural Nigeria. Closing the gender poverty gap will ensure achievement of the first sustainable development goal of poverty eradication.

Dichotomization of quantitative variables in poverty analysis

It has been proposed four schemes of dichotomization for the four household level quantitative variables – area of land holding, geographic accessibility to the nearest market centre, number of children under 15 and number of literate members of working-age – with justification in the selection of threshold value for each variable to dichotomize into disadvantaged and advantaged group of households using the Nepal Living Standard Survey 2010/11 data with 5988 households and 28,670 of their household members. Association of each dichotomized variable with household level poverty status (poor/non-poor) was found highly significant. Finally, the proposed schemes of dichotomization have tested empirically for their ability to differentiate the poor people into two categories - ‘more vulnerable’ and ‘less vulnerable’ - by fist estimating the three measures of poverty – head count index, poverty gap index and squared poverty gap index - of each group of population and comparing the estimated measures between the disadvantaged and advantaged group of populations. Statistical analysis has been performed by using IBM SPSS version 20. To a large extent the proposed schemes of dichotomization have found to differentiate the poor people into two groups; for example, the head count index of the disadvantaged group of the number of children under 15 is 3.1 times higher than that of the advantaged group. The results of this paper are expected to be useful to the policy makers and development planners of Nepal for focusing their poverty reduction program towards the more vulnerable group of population as well as academician. BIBECHANA 19 (2022) 142-149

Cure-all or curse? A meta-regression on the effect of tourism development on poverty alleviation

The purpose of this study is to synthesize the overall effect size of tourism on poverty alleviation and to unveil underlying factors explaining the heterogeneity of this effect size across estimates. Using a rigorous meta-analysis based on 298 estimates extracted from 33 studies, we calibrate a combined effect size of −0.14 with a 95% confidence interval of [-0.23, −0.05], indicating that tourism moderately reduces poverty. A meta-regression demonstrates that the effect size of the tourism–poverty nexus is susceptible to several factors, such as poverty and tourism measures, focal countries’ development level, and endogeneity treatment. In particular, the results show that use of the Gini coefficient, a popular proxy for the poverty gap, can unexpectedly underestimate the negative effect size. Moreover, funnel plot and Galbraith plot demonstrate that researchers are apt to report a positive tourism–poverty nexus in the literature. Lastly, research and policy implications are provided.

Does intra‐country poverty convergence depend on spatial spillovers and the type of poverty measure? Evidence from Pakistan

AbstractKnowing whether poverty rates converge within a country matters for regional development policy and for understanding growth processes. In this paper, we use five poverty measures, calculated biennially from 2004 to 2014 for 100 districts in Pakistan, to test for poverty convergence. Spatial autoregressive models are used to capture spatial spillovers. Conventional money‐metric poverty measures, such as the headcount index and poverty gap index, show unconditional convergence, and the convergence is more apparent if indirect impacts from spillovers are accounted for. In contrast, two multidimensional poverty indices show no convergence and no indirect impacts from spatial spillovers. Catch‐up growth in initially poorer areas is apparent with the money‐metric poverty measures traditionally used in Pakistan but not with the types of multidimensional poverty measures used officially since 2015. This difference in apparent poverty convergence could affect regional development policy choices.

Investment and inclusive growth in sub-Saharan Africa

PurposeThis paper examined the inclusive growth position of sub-Saharan Africa (SSA) through the metrics of poverty-gap, bottom20 and employment. Through these indicators, the study investigated the effects of domestic-investment on inclusive-growth and established the moderating impact of governance in the domestic investment-inclusive growth nexus. It further accounted for potential nonlinearity and investigated the governance threshold that moderates domestic investment-inclusive growth relationships.Design/methodology/approachUsing a sample of 41-SSA countries, the paper employed the fixed effect (FE) with the Driscoll and Kraay nonparametric consistent covariance matrix estimator, the generalized method of moments (GMM) and the dynamic-panel threshold techniques.FindingsThe poverty-gap metric showed that with increasing GDP-growth, the income of the poor falls below the poverty-line, suggesting that GDP-growth episodes may have widened the poverty-gap and contributed minimally to reducing it. Findings revealed insignificant effects of GDP-growth on the bottom-20 metric while the employment-metric indicated that the “jobless-growth” phenomenon remained valid. The authors essentially established that economic growth has not been inclusive but the complementary roles played by domestic-investments and governance are essential requirements for achieving inclusive growth. The threshold-modeling indicated that countries in the upper-regime of governance gained more in reducing poverty gaps, increasing income shared by the bottom-quintile and improving employment for every percentage increase in investment. The authors confirmed nonlinearity and showed that there exists a governance threshold that respective governments in Africa must reach for domestic-investment to enhance inclusive growth.Originality/valueThe paper accounted for cross-sectional dependence, nonlinearity and the governance threshold needed for domestic-investment to stimulate inclusive growth.

Urbanization and poverty in Sub-Saharan Africa: evidence from dynamic panel data analysis of selected urbanizing countries

Urbanization in Sub-Saharan Africa (SSA) is generally highlighted as a puzzle that deviates from the stylized facts in the literature. Using data from a panel of 29 urbanizing countries in SSA from 1985 to 2019, the study employs the two-step system generalized methods of moments to investigate the effect of urbanization on the Poverty Headcount ratio and Poverty Gap. The estimated urbanization elasticities of poverty indicate that at growth rates, a 1 percentage point increase in urbanization rate induces 0.04 and 0.05 (0.07 and 0.09) percentage points decrease in the Poverty Headcount ratio and Poverty Gap in the short-run (long-run), respectively. Similarly, at levels, a 1 percent increase in urbanization level induces 0.22 and 0.32 (0.60 and 0.68) percent decrease in the Poverty Headcount ratio and Poverty Gap in the short-run (long-run), respectively. Consistently, these results show stronger effect of urbanization on the depth of poverty relative to the incidence of poverty. These findings reappraise the literature on the urbanization of poverty in SSA as well as provide a nuanced understanding of the effect of urbanization on the different class of poverty measures. Notwithstanding, the poverty reduction potential of urbanization is not automatic and requires enormous investment in public infrastructure to achieve.

The local matters: Working with teachers to rethink the poverty and achievement gap discourse

This paper is concerned with the current achievement gap policy agenda and associated material and discursive power that shape teachers’ work in schools with high child poverty rates. More specifically, it explores how a university/school research collaboration – Local Matters – can disturb such forms of subjectivation by enabling educators to resist such policy agendas/discourses by drawing on locally contextualized knowledge and place-based evidence. Based on fieldwork undertaken over the past three years at over forty schools with eighty-four teachers across five Local Authority regions in Northern England, we provide a critical discourse analysis of a series of semi structured interviews and focus group activities of those who participated in the project. Based on an interdiscursive and linguistic analysis of the data we show how educators wrestle with the tensions between attempting to enact a social justice, collaborative and a democratic pedagogic approach and dealing with policy requirements that focus on the achievement gap problem and associated ‘what works’ discourse solution. Through the enactment of the program we show how educators, in collaboration with activist researchers, can develop forms of principled resistance that shake up and unsettle dominant forms of child poverty practice and discourses in schools.