IDEAS home Printed from https://ideas.repec.org/a/sae/soueco/v11y2010i2p245-285.html
   My bibliography  Save this article

The Significance of Capital Assets in Moving Out of Poverty

Author

Listed:
  • Chandika Gunasinghe

    (Chandika Gunasinghe is Lecturer in Economics at the Department of Economics, University of Ruhuna, Matara, Sri Lanka. Email: gunasinghe@econ.ruh.ac.lk)

Abstract

This article investigates the importance of capital assets in moving out of poverty by reviewing the Samurdhi (Prosperity) Development Programme (SDP) implemented to eradicate poverty of Sri Lanka in 1995. One hundred and seventy beneficiaries from a randomly selected sample of the Ratnapura district were categorized into five poverty levels: extreme poor, poor, vulnerable non-poor, viable and sustainable households based on subjective range of income differences around two official poverty lines of the district for 1995 and 2009. A transition matrix estimated to examine households’ possible movements between these five poverty levels during 1995–2009 confirmed that the net impact of the poverty reduction initiatives of the SDP is highly questionable. However, the results of two multinomial logistic regressions estimated to investigate the relationship between a household’s ability to move out of poverty and the growth of its capital assets confirmed that there is a higher probability for a household to get out of poverty when its assets base is developed. A main policy message is that it is imperative for the SDP to reassessing and reformulating its policy strategies to strengthen assets base of beneficiaries of the programme in order to alleviate poverty.

Suggested Citation

  • Chandika Gunasinghe, 2010. "The Significance of Capital Assets in Moving Out of Poverty," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 11(2), pages 245-285, September.
    • Handle: RePEc:sae:soueco:v:11:y:2010:i:2:p:245-285
    DOI: 10.1177/139156141001100205
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/139156141001100205
    Download Restriction: no
    File URL: https://libkey.io/10.1177/139156141001100205?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. World Bank, 2002. "Sri Lanka : Poverty Assessment," World Bank Publications - Reports 15387, The World Bank Group.
    2. Clive Corder, 1997. "The Reconstruction and Development Programme: Success Or Failure?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 41(1), pages 183-203, July.
    3. Cramer,J. S., 2011. "Logit Models from Economics and Other Fields," Cambridge Books, Cambridge University Press, number 9780521188036, January.
    4. Okrasa,Wlodzimierz, 1999. "The dynamics of poverty and the effectiveness of Poland's safety net (1993-96)," Policy Research Working Paper Series 2221, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Szabó, György & Borsos, István & Szombati, Edit, 2019. "Games, graphs and Kirchhoff laws," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 521(C), pages 416-423.
    2. Katarzyna Sokołowska, 2014. "Determinants and perceptions of social mobility in Poland, 1992-2008," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 8(1), March.
    3. Bianca Polenzani & Chiara Riganelli & Andrea Marchini, 2020. "Sustainability Perception of Local Extra Virgin Olive Oil and Consumers’ Attitude: A New Italian Perspective," Sustainability, MDPI, vol. 12(3), pages 1-18, January.
    4. Annemiek Vuren & Daniel Vuuren, 2007. "Financial Incentives in Disability Insurance in the Netherlands," De Economist, Springer, vol. 155(1), pages 73-98, March.
    5. Gordon Kemp & João Santos Silva, 2016. "Partial effects in fixed-effects models," United Kingdom Stata Users' Group Meetings 2016 06, Stata Users Group.
    6. Aldona Standar & Agnieszka Kozera & Łukasz Satoła, 2021. "The Importance of Local Investments Co-Financed by the European Union in the Field of Renewable Energy Sources in Rural Areas of Poland," Energies, MDPI, vol. 14(2), pages 1-23, January.
    7. Zigraiova, Diana & Jakubik, Petr, 2015. "Systemic event prediction by an aggregate early warning system: An application to the Czech Republic," Economic Systems, Elsevier, vol. 39(4), pages 553-576.
    8. Fioretti, Guido, 2007. "The organizational learning curve," European Journal of Operational Research, Elsevier, vol. 177(3), pages 1375-1384, March.
    9. Giuseppe Orlando & Roberta Pelosi, 2020. "Non-Performing Loans for Italian Companies: When Time Matters. An Empirical Research on Estimating Probability to Default and Loss Given Default," IJFS, MDPI, vol. 8(4), pages 1-22, November.
    10. Beare, Brendan K & Toda, Alexis Akira, 2020. "On the emergence of a power law in the distribution of COVID-19 cases," University of California at San Diego, Economics Working Paper Series qt9k5027d0, Department of Economics, UC San Diego.
    11. Amarasinghe, Upali & Samad, Madar & Anputhas, Markandu, 2005. "Spatial clustering of rural poverty and food insecurity in Sri Lanka," Food Policy, Elsevier, vol. 30(5-6), pages 493-509.
    12. Trinh, Thoai Quang & Rañola, Roberto F. & Camacho, Leni D. & Simelton, Elisabeth, 2018. "Determinants of farmers’ adaptation to climate change in agricultural production in the central region of Vietnam," Land Use Policy, Elsevier, vol. 70(C), pages 224-231.
    13. Karacuka, Mehmet & Çatık, A. Nazif & Haucap, Justus, 2013. "Consumer choice and local network effects in mobile telecommunications in Turkey," Telecommunications Policy, Elsevier, vol. 37(4), pages 334-344.
    14. Diana Zigraiova & Petr Jakubik, 2014. "Systemic Event Prediction by Early Warning System," Working Papers IES 2014/01, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Jan 2014.
    15. Eleftherios Giovanis, 2012. "Study of Discrete Choice Models and Adaptive Neuro-Fuzzy Inference System in the Prediction of Economic Crisis Periods in USA," Economic Analysis and Policy, Elsevier, vol. 42(1), pages 79-96, March.
    16. J. S. Cramer, 2007. "Robustness of Logit Analysis: Unobserved Heterogeneity and Mis‐specified Disturbances," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(4), pages 545-555, August.
    17. Guo, Xiaoli & Ryvkin, Dmitry, 2022. "When is intergroup herding beneficial?," Mathematical Social Sciences, Elsevier, vol. 120(C), pages 66-77.
    18. Kincses, Áron & Tóth, Géza & Tömöri, Mihály & Michalkó, Gábor, 2016. "Identifying settlements involved in Hungary’s transit traffic," MPRA Paper 74508, University Library of Munich, Germany.
    19. Grzenda Wioletta, 2021. "Modelling the occupational and educational choices of young people in Poland using Bayesian multinomial logit models," Statistics in Transition New Series, Statistics Poland, vol. 22(3), pages 175-191, September.
    20. Selahattin Guris & Nurcan Metin & Ebru Caglayan, 2007. "The Brand Choice Model of Wine Consumers: A Multinomial Logit Model," Quality & Quantity: International Journal of Methodology, Springer, vol. 41(3), pages 447-460, June.

    More about this item

    Keywords

    Poverty levels; assets base; transition matrix; multinomial logistic regressions; Sri Lanka; JEL: C00; JEL: C25; JEL: I32; JEL: I38;
    All these keywords.

    JEL classification:

    • C00 - Mathematical and Quantitative Methods - - General - - - General
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:soueco:v:11:y:2010:i:2:p:245-285. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ips.lk/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.