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Book part
Publication date: 2 December 2021

Suman Seth and Sabina Alkire

Post reform India has generated high economic growth, yet progress in income poverty and many other key development outcomes has been modest. This chapter primarily…

Abstract

Post reform India has generated high economic growth, yet progress in income poverty and many other key development outcomes has been modest. This chapter primarily examines how inclusive economic growth has been in India between 2005–2006 and 2015–2016 in reducing multidimensional poverty captured by the global multidimensional poverty index (MPI). The authors employ a constellation of elasticity and semi-elasticity measures to examine vertical, horizontal as well as dimensional inclusiveness of economic growth. Nationally, the authors estimate that a 1% annual economic growth in India during their study period is associated with an annual reduction in MPI of 1.34%. The association of the national growth to state poverty reduction (horizontal inclusiveness) is, however, not uniform. Some states have been successful in reducing poverty faster than the national average despite slower economic growth between 2005–2005 and 2015–2016; whereas, other states have been less successful to do so despite faster economic growth during the same period. The authors’ analyses and findings show how these tools may be used in practical applications to measure inclusive growth and inform policy.

Details

Research on Economic Inequality: Poverty, Inequality and Shocks
Type: Book
ISBN: 978-1-80071-558-5

Keywords

Book part
Publication date: 10 October 2017

Suman Seth and Sabina Alkire

A number of multidimensional poverty measures that respect the ordinal nature of dimensions have recently been proposed within the counting approach framework. Besides…

Abstract

A number of multidimensional poverty measures that respect the ordinal nature of dimensions have recently been proposed within the counting approach framework. Besides ensuring a reduction in poverty, however, it is important to monitor distributional changes to ensure that poverty reduction has been inclusive in reaching the poorest. Distributional issues are typically captured by adjusting a poverty measure to be sensitive to inequality among the poor. This approach, however, has certain practical and conceptual limitations. It conflicts, for example, with some policy-relevant measurement features, such as the ability to decompose a measure into dimensions post-identification and does not create an appropriate framework for assessing disparity in poverty across population subgroups. In this chapter, we propose and justify the use of a separate decomposable inequality measure – a positive multiple of “variance” – to capture the distribution of deprivations among the poor and to assess disparity in poverty across population subgroups. We demonstrate the applicability of our approach through two contrasting inter-temporal illustrations using Demographic Health Survey data sets for Haiti and India.

Book part
Publication date: 26 August 2015

Luis Beccaria, Roxana Maurizio, Gustavo Vázquez and Manuel Espro

Latin America experienced a long period of sustained growth since 2003 that positively impacted social and labor market indicators, including poverty. This paper…

Abstract

Latin America experienced a long period of sustained growth since 2003 that positively impacted social and labor market indicators, including poverty. This paper contributes to the understanding of this process as it carries out a comparative study of poverty and indigence dynamics in five Latin American countries during 2003–2012. Specifically, it extends the analysis of a previously published study by broadening the time coverage and examining indigence mobility. It analyzes the extent to which countries with different levels of poverty (extreme poverty) incidence diverge in terms of exit and entry rates, and identifies the relative importance of the frequency and impact of events associated with poverty transitions. For this, a dynamic analysis of panel data is carried out using regular household surveys. Sizeable rates of poverty and indigence movements were observed in all five countries and it was found that a large proportion of poor or indigent households experienced positive events, mainly related to the labor market; however, only a small fraction of them actually exited poverty and indigence. It appeared, therefore, that even when the economy behaved reasonably well, high levels of labor turnover and income mobility (even of a negative nature) still prevail, mainly associated with the high level of precariousness and the undeveloped system of social protection that characterize the studied countries.

Details

Measurement of Poverty, Deprivation, and Economic Mobility
Type: Book
ISBN: 978-1-78560-386-0

Keywords

Article
Publication date: 7 August 2009

Kwame Ameyaw Domfeh and Justice Nyigmah Bawole

The aim of this paper is to examine poverty and poverty reduction at the local level using the Hohoe Municipality and Sefwi‐Wiaso District, both in Ghana, as a case.

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Abstract

Purpose

The aim of this paper is to examine poverty and poverty reduction at the local level using the Hohoe Municipality and Sefwi‐Wiaso District, both in Ghana, as a case.

Design/methodology/approach

The paper adopts a survey method, collecting data from 180 farmers on the various aspects of the topic to form the basis of the study. Questionnaires and focus group discussions were used as the data collection instruments.

Findings

The study found that, although many poverty reduction initiatives have been undertaken in Ghana, their impact on the poor farming communities has been very minimal. The failure of these poverty reduction policies could be attributed to the non‐involvement of local people in the process of policy formation. It also revealed that the number of poor people and the degree of poverty might be higher than the details captured by official statistics and publications.

Research limitations/implications

The paper is biased towards farmers. It did not consider other sectors of the Ghanaian population.

Practical implications

Poverty reduction programmes to be developed and implemented in the future must be designed using bottom‐up approaches and must factor the rural farmer into the equation since the agriculture sector is still the largest employer in Ghana.

Originality/value

The paper discusses poverty and how it can be reduced, relying on what the victims of poverty consider as the main causes of poverty and how its reduction can be achieved.

Details

Management of Environmental Quality: An International Journal, vol. 20 no. 5
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 4 February 2021

Ikechukwu Kelikume

This paper aims to examine the relationship between mobile phones, the internet, financial inclusion, the informal economy and poverty reduction.

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Abstract

Purpose

This paper aims to examine the relationship between mobile phones, the internet, financial inclusion, the informal economy and poverty reduction.

Design/methodology/approach

The study examines the relationship between mobile phones, the internet, financial inclusion, the informal economy and poverty reduction using the system generalized method of moments approach and a panel data set of 42 African countries for the period 1995–2017.

Findings

The study shows that mobile penetration and internet usage have significant positive relationship with the informal sector. Financial inclusion has significant effects, meaning that increased financial inclusion is associated with a developed informal economy. Also, mobile penetration and internet usage play significant roles in the relationship between financial inclusion and the informal economy. Further, mobile penetration and internet usage have a significant positive relationship with poverty reduction. Similarly, financial inclusion has significant effects, meaning higher financial inclusion is associated with increased poverty reduction. The informal economy also has significant effects, suggesting that the development of the informal economy is associated with poverty reduction.

Originality/value

Most importantly, mobile penetration, internet usage and financial inclusion play significant roles in the link between the informal economy and poverty reduction.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 15 no. 4
Type: Research Article
ISSN: 1750-6204

Keywords

Article
Publication date: 3 August 2010

Nicholas M. Odhiambo

The paper seeks to examine the inter‐temporal causal relationship between financial development and poverty reduction in Kenya during the period 1968‐2006. The study…

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Abstract

Purpose

The paper seeks to examine the inter‐temporal causal relationship between financial development and poverty reduction in Kenya during the period 1968‐2006. The study attempts to answer one critical question: is financial development in Kenya a spur to poverty reduction?

Design/methodology/approach

The study uses a trivariate causality model based on cointegration and error‐correction mechanism. Unlike the majority of the previous studies, the current study incorporates the savings rate as an intermittent variable in the bivariate causality setting between financial development and poverty reduction – thereby creating a simple trivariate causality model.

Findings

The study finds a distinct causal flow from financial development to poverty reduction in Kenya. In addition, the study finds a uni‐directional causality from financial development to savings and a bi‐directional causality between savings and poverty reduction. The results apply irrespective of whether the causality test is conducted in the short run or in the long run.

Practical implications

The empirical results of this study will help policy makers to determine whether the financial development in Kenya is pro‐poor and pro‐savings.

Originality/value

Although several attempts have been made to investigate the relationship between financial development, savings, economic growth and other macroeconomic variables, very few studies have examined the impact of financial development on the ultimate policy goal, i.e. poverty reduction. Moreover, the majority of the previous studies are based mainly on Asia and Latin America – affording sub‐Saharan African countries very little or no coverage at all.

Details

Journal of Economic Studies, vol. 37 no. 3
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 8 February 2016

Madhu Sehrawat and A K Giri

The purpose of this paper is to examine the relationship between financial sector development and poverty reduction in India using annual data from 1970 to 2012. The paper…

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Abstract

Purpose

The purpose of this paper is to examine the relationship between financial sector development and poverty reduction in India using annual data from 1970 to 2012. The paper attempts to answer the critical question: does financial sector development lead to poverty reduction?

Design/methodology/approach

Stationarity properties of the series are checked by using Ng-Perron unit root test. The paper uses the Auto Regressive Distributed Lag (ARDL) bound testing approach to co-integration to examine the existence of long-run relationship; error-correction mechanism for the short-run dynamics and Granger non-causality test to test the direction of causality.

Findings

The co-integration test confirms a long-run relationship between financial development and poverty reduction for India. The ARDL test results suggest that financial development and economic growth reduces poverty in both long run and short run. The causality test confirms that there is a positive and unidirectional causality running from financial development to poverty reduction.

Research limitations/implications

This study implies that poverty in India can be reduced by financial inclusion and financial accessibility to the poor. For a fast growing economy with respect to financial sector development this may have far-reaching implication toward inclusive growth.

Originality/value

This paper is the first of its kind to empirically examine the causal relationship between financial sector development and poverty reduction in India using modern econometric techniques.

Details

International Journal of Social Economics, vol. 43 no. 2
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 4 December 2017

Varun Chotia and N.V.M. Rao

India is a developing nation where the marginal benefit of infrastructure development is tremendous. The purpose of this paper is to analyze the relationship between…

Abstract

Purpose

India is a developing nation where the marginal benefit of infrastructure development is tremendous. The purpose of this paper is to analyze the relationship between infrastructure development and poverty reduction for India using the yearly data from 1991 to 2015.

Design/methodology/approach

The authors use the principal component analysis to construct indices for four major sub-sectors, namely, transport, water and sanitation, telecommunications and energy, falling under the broad infrastructure sector and then using these sectorwise indices, the authors construct an overall index which represents infrastructure development. The authors provide evidence on the link between infrastructure development and poverty reduction by using the auto regressive distributed lag (ARDL) bound testing approach.

Findings

The ARDL test results suggest that infrastructure development and economic growth reduce poverty in both long run and short run. The causality test confirms that there is a positive and unidirectional causality running from infrastructure development to poverty reduction.

Research limitations/implications

The study confirms that India’s Infrastructure development plays a vital role in reducing poverty and calls for the Indian Government to adopt economic policies which are aimed at developing and strengthening the infrastructure levels and bringing in more investment in the infrastructure sector in order to help the poor population by making them exposed to better opportunities of employment and income growth, thereby achieving the goal of poverty reduction.

Originality/value

This paper is a fresh and unique attempt of its kind to empirically investigate the causal relationship between infrastructure development and poverty reduction in India using modern econometric techniques.

Details

International Journal of Social Economics, vol. 44 no. 12
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 2 October 2017

Khurshed Alam

The purpose of this paper is to identify the factors which are instrumental to poverty reduction opposed to many factors that are considered as impediments to poverty

Abstract

Purpose

The purpose of this paper is to identify the factors which are instrumental to poverty reduction opposed to many factors that are considered as impediments to poverty reduction in a poor country like Bangladesh.

Design/methodology/approach

This paper is an outcome of review of literature covered wide range of issues including sectoral contribution to economic growth but none has exclusively dealt with the instrumental role of the poverty reduction factors, insider’s view, long-term observations (1960-2014), and reviews of secondary data.

Findings

In order to reduce poverty, rather than attempting to change the “culture of poverty,” remove the “structural trap,” or “kin system as poverty trap” it can be achieved through harnessing the enabling factors of poverty reduction. Study argues that rather than focusing on “barriers” to poverty reduction, a country needs to identify and focus on its “potential” factors of poverty reduction. The dominant enabling factors for Bangladesh were agricultural development and remittance. The utilization of land and labor could bring a transformation in the rural economy of Bangladesh which was essential to poverty reduction.

Practical implications

The study shows that the individuals can escape poverty largely through their own effort where a proper policy support from the government is needed. The state needs to play the facilitating role rather than the instrumental in the case of poverty reduction.

Originality/value

The paper reveals instruments to poverty reduction where usual practice was to identify the barrier to development and to suggest the means of overcoming those barriers. It suggests how to look into the matter from other way round where instead of identifying the barrier attempt should be made to identify the enabling factors and to harness those enabling factors. The findings are based on the country-specific literatures but not generalized in the form as attempted here. The study shows a means of poverty reduction where country-specific strategy or home-grown model can be drawn out based on the identification of potential factors.

Details

World Journal of Science, Technology and Sustainable Development, vol. 14 no. 4
Type: Research Article
ISSN: 2042-5945

Keywords

Article
Publication date: 4 November 2021

Guotao Yang, Yue Wang, Huibin Chang and Qinghua Chen

This study examines the relative efficiencies of anti-poverty policies implemented in 28 Chinese provinces.

Abstract

Purpose

This study examines the relative efficiencies of anti-poverty policies implemented in 28 Chinese provinces.

Design/methodology/approach

This study uses meta-frontier undesirable dynamic two-stage data envelopment analysis. The authors divide the poverty reduction process into two stages: agricultural production and poverty reduction. Public expenditure is the input for the second stage, and the population below the poverty line is the undesirable output. The authors compute the efficiencies (overall efficiency, efficiency of each stage and the efficiencies of individual inputs and outputs) using meta-frontier analysis for the 28 provinces.

Findings

The results show that: (1) a significant imbalance exists between the eastern and western regions in terms of input-output efficiencies; (2) the poverty reduction stage generally fared better than the agricultural production stage did. In particular, most provinces saw increases in poverty reduction efficiencies between 2013 and 2017; (3) the place-based poverty relief policies introduced in recent years are effective at reducing the poverty rate and reaching the government-set goals and (4) while disposable income has increased steadily over the past few years, income inequality has been exacerbated.

Research limitations/implications

The results show that: (1) a significant imbalance exists between the eastern and western regions in terms of input-output efficiencies; (2) the poverty reduction stage generally fared better than the agricultural production stage did. In particular, most provinces saw increases in poverty reduction efficiencies between 2013 and 2017; (3) the place-based poverty relief policies introduced in recent years are effective at reducing the poverty rate and reaching the government-set goals and (4) while disposable income has increased steadily over the past few years, income inequality has exacerbated.

Originality/value

A large amount of attention and public resources are devoted to fighting poverty and associated market failures in China. The extant literature focuses either on the agricultural production itself or the relationship between human capital and productivity levels. Making use of recent developments of the DEA method, the authors propose a new framework for evaluating the efficiencies of the poverty reduction process. Such a framework has the advantage of giving researchers and policymakers a more detailed diagnosis with regard to the components in the endeavor to eliminate poverty and providing useful information for policymakers to optimize public funds use. Methodologically, the framework is flexible enough to be employed for future research in similar appraisals, at different geographic and scale aggregation levels, for public projects including but not limited to poverty reduction.

Details

China Agricultural Economic Review, vol. 14 no. 2
Type: Research Article
ISSN: 1756-137X

Keywords

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