IDEAS home Printed from https://ideas.repec.org/p/ags/iaae12/125785.html
   My bibliography  Save this paper

Poverty dynamics in Far-western Rural Hills of Nepal: Evidences from panel data

Author

Listed:
  • Joshi, Niraj Prakash
  • Maharjan, Keshav Lall
  • Piya, Luni

Abstract

Poverty, being persistent and widespread, still remains core issue to be researched in Nepal. Moreover, there lacks study on dynamic aspects of poverty at the household level. Therefore, this study intends to capture the dynamics of poverty in poverty stricken Far-Western Rural Hill district of Baitadi based on panel data collected through field survey in 2001 and 2007. An empirical analysis is made by employing multinomial logit regression by dividing household into three categories; non-poor, transitory poor, and chronic poor. The results suggest that the incidence of poverty declined sharply between the study period, but is more favored in relatively well-off Village Development Committee (VDC), Patan. Similarly, excessively high proportion of Occupational Caste (OC) households are chronically poor, none of them were non-poor in both surveys. Moreover, the risk of them falling into chronic poverty is significantly higher. Also, female-headed household, and household with higher dependency ratio has significantly higher risk of falling into chronic poverty. However, landholding and irrigation coverage reduce the risk of households to fall into chronic poverty. Further, disaggregation of transitory poverty into move-into and move-out of poverty also shows higher risk of OC households to move-into poverty, mainly due to their limited socio-economic assets. In addition, the occurrence of natural disasters also increases the risk of households to move-into poverty. On the other hand, Increase in schooling years of household’s head and landholding help the household to move-out of poverty. Therefore, any poverty reduction program to deal with transitory as well as chronic poverty should focus relatively remote VDCs like Melauli. Similarly, OC households, whose major occupation is either agriculture or laboring, should be targeted. Poverty reduction programs should generate employment opportunities, which help to deal with both chronic as well as transitory poverty through a reduction in the dependency ratio. Similarly, introduction of temporary relief programs during occurrence of natural disasters will be very effective in dealing with transient poverty.

Suggested Citation

  • Joshi, Niraj Prakash & Maharjan, Keshav Lall & Piya, Luni, 2012. "Poverty dynamics in Far-western Rural Hills of Nepal: Evidences from panel data," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125785, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae12:125785
    DOI: 10.22004/ag.econ.125785
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/125785/files/Poverty%20dynamics%20in%20Far-western%20Rural%20Hills%20of%20Nepal%20Evidences%20from%20panel%20data.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.125785?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. Jyotsna Jalan & Martin Ravallion, 2000. "Is transient poverty different? Evidence for rural China," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 82-99.
    2. Joshi, Niraj Prakash & Maharjan, Keshav Lall, 2007. "Assessment of food self-sufficiency and food security situation in Nepal," MPRA Paper 35385, University Library of Munich, Germany.
    3. G. M. Arif & Faiz Bilquees, 2007. "Chronic and Transitory Poverty in Pakistan: Evidence from a Longitudinal Household Survey," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(2), pages 111-127.
    4. Joshi, Niraj Prakash & Maharjan, Keshav Lall & Piya, Luni, 2010. "Poverty and Food Insecurity in Nepal A Review," MPRA Paper 35387, University Library of Munich, Germany.
    5. Lipton, Michael & Ravallion, Martin, 1995. "Poverty and policy," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 41, pages 2551-2657, Elsevier.
    6. Joshi, Niraj Prakash & Maharjan, Keshav Lall, 2008. "A Study on Rural Poverty Using Inequality Decomposition in Western Hills of Nepal: A Case of Gulmi District," MPRA Paper 35386, University Library of Munich, Germany.
    7. Jalan, Jyotsna & Ravallion, Martin, 1998. "Determinants of transient and chronic poverty : evidence from rural China," Policy Research Working Paper Series 1936, The World Bank.
    8. Mckay, Andrew & Lawson, David, 2003. "Assessing the Extent and Nature of Chronic Poverty in Low Income Countries: Issues and Evidence," World Development, Elsevier, vol. 31(3), pages 425-439, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dean Jolliffe & Espen Beer Prydz, 2016. "Estimating international poverty lines from comparable national thresholds," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(2), pages 185-198, June.
    2. Charlery, Lindy & Walelign, Solomon Zena, 2015. "Assessing environmental dependence using asset and income measures: Evidence from Nepal," Ecological Economics, Elsevier, vol. 118(C), pages 40-48.

    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. Thomas, Anne-Claire & Gaspart, Frédéric, 2015. "Does Poverty Trap Rural Malagasy Households?," World Development, Elsevier, vol. 67(C), pages 490-505.
    2. Arne Bigsten & Abebe Shimeles, 2004. "Dynamics of Poverty in Ethiopia," WIDER Working Paper Series RP2004-39, World Institute for Development Economic Research (UNU-WIDER).
    3. Mai, Tung & Mahadevan, Renuka, 2016. "A research note on the poverty dynamics and cost of poverty inequality: Case study of Indonesia," Economic Analysis and Policy, Elsevier, vol. 49(C), pages 100-107.
    4. Hoy, Michael & Zheng, Buhong, 2011. "Measuring lifetime poverty," Journal of Economic Theory, Elsevier, vol. 146(6), pages 2544-2562.
    5. Erik Thorbecke, 2004. "Conceptual and Measurement Issues in Poverty Analysis," WIDER Working Paper Series DP2004-04, World Institute for Development Economic Research (UNU-WIDER).
    6. Christelle Swanepoel, 2005. "Poverty and Poverty Dynamics in Rural Ethiopia," Working Papers 03/2005, Stellenbosch University, Department of Economics.
    7. Mohiburrahman Iqbal, 2013. "Vulnerability to expected poverty in Afghanistan," ASARC Working Papers 2013-14, The Australian National University, Australia South Asia Research Centre.
    8. J. You, 2011. "Evaluating poverty duration and transition: a spell-approach to rural China," Applied Economics Letters, Taylor & Francis Journals, vol. 18(14), pages 1377-1382.
    9. Azomahou T.T. & Yitbarek E., 2015. "Poverty persistence and informal risk management: Micro evidence from urban Ethiopia," MERIT Working Papers 2015-006, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    10. Lee, Seungmin & Barrett, Christopher B. & Hoddinott, John F., 2021. "Food Security Dynamics in the United States, 2001-2017," Working Papers 316604, Cornell University, Department of Applied Economics and Management.
    11. Akhter U. Ahmed & Salauddin Tauseef, 2022. "Climbing up the Ladder and Watching Out for the Fall: Poverty Dynamics in Rural Bangladesh," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(1), pages 309-340, February.
    12. Yadira Méndez-Lemus & Antonio Vieyra, 2014. "Tracing Processes in Poverty Dynamics: A Tale of Peri-urban Small-scale Farmers in Mexico City," Urban Studies, Urban Studies Journal Limited, vol. 51(10), pages 2009-2035, August.
    13. Alma Kudebayeva, 2018. "Chronic Poverty in Kazakhstan," CERGE-EI Working Papers wp627, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    14. Glauben, Thomas & Herzfeld, Thomas & Rozelle, Scott & Wang, Xiaobing, 2012. "Persistent Poverty in Rural China: Where, Why, and How to Escape?," World Development, Elsevier, vol. 40(4), pages 784-795.
    15. Ward, Patrick S., 2016. "Transient Poverty, Poverty Dynamics, and Vulnerability to Poverty: An Empirical Analysis Using a Balanced Panel from Rural China," World Development, Elsevier, vol. 78(C), pages 541-553.
    16. Joshi, Niraj Prakash & Maharjan, Keshav Lall & Piya, Luni, 2010. "Poverty and Food Insecurity in Nepal A Review," MPRA Paper 35387, University Library of Munich, Germany.
    17. Nicolai Suppa, 2017. "Measures of Human Development: Key Concepts and Properties," OPHI Working Papers ophiwp109.pdf, Queen Elizabeth House, University of Oxford.
    18. Li, Bingqin, 2004. "Urban social exclusion in transitional China," LSE Research Online Documents on Economics 6309, London School of Economics and Political Science, LSE Library.
    19. Bingqin Li, 2006. "Urbanization and social policy in China," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 13(1), pages 1-26, June.
    20. Suri, Tavneet & Tschirley, David L. & Irungu, Charity & Gitau, Raphael & Kariuki, Daniel, 2008. "Rural Incomes, Inequality and Poverty Dynamics in Kenya," Working Papers 202613, Egerton University, Tegemeo Institute of Agricultural Policy and Development.

    More about this item

    Keywords

    Food Security and Poverty;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ags:iaae12:125785. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    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.