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Household Poverty Dynamics in Malawi

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  • Bokosi, Fanwell Kenala

Abstract

This paper’s goal is to identify the sources of expenditure and poverty dynamics among Malawian households between 1998 and 2002 and to model poverty transitions in Malawi using a bivariate probit model with endogenous selection to address the "initial conditions' problem. The exogeneity of the initial state is strongly rejected and could result in considerable overstatement of the effects of the explanatory factors. The results of the bivariate probit model do indicate that education of the household head, per capita acreage cultivated and changes in household size are significantly related to the probability of being poor in 2002 irrespective of the poverty status in 1998. For those households who were poor in 1998, the probability of being poor in 2002 was significantly influenced by household size, value of livestock owned and mean time to services, while residence in the Northern region was a significant variable in determining the probability of being poor in 2002 for households that were not poor in 1998.

Suggested Citation

  • Bokosi, Fanwell Kenala, 2006. "Household Poverty Dynamics in Malawi," MPRA Paper 1222, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:1222
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    File URL: https://mpra.ub.uni-muenchen.de/1222/1/MPRA_paper_1222.pdf
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    References listed on IDEAS

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    1. Carter, Michael R. & May, Julian, 1999. "Poverty, livelihood and class in rural South Africa," World Development, Elsevier, vol. 27(1), pages 1-20, January.
    2. Bob Baulch & John Hoddinott, 2000. "Economic mobility and poverty dynamics in developing countries," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 1-24.
    3. Mary Jo Bane & David T. Ellwood, 1986. "Slipping into and out of Poverty: The Dynamics of Spells," Journal of Human Resources, University of Wisconsin Press, vol. 21(1), pages 1-23.
    4. Gary Fields & Paul Cichello & Samuel Freije & Marta Menendez & David Newhouse, 2003. "Household income dynamics: a four-country story," Journal of Development Studies, Taylor & Francis Journals, vol. 40(2), pages 30-54.
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    Cited by:

    1. Gadom DJAL-GADOM & Armand MBOUTCHOUANG KOUNTCHOU, 2016. "Cross-County Poverty Comparisons In Chad: The Impact Of The Oil Revenues Redistribution Policy," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 44, pages 61-78.
    2. Mussa, Richard, 2009. "Impact of fertility on objective and subjective poverty in Malawi," MPRA Paper 16089, University Library of Munich, Germany.
    3. Upev, Samuel Ka’ase & Onu, Justice Inyanda & Mshelia, Shuaibu Iliya & Michael, Amurtiya, 2021. "Poverty and its Alleviating Strategies among Rural Farming Households in Benue State, Nigeria," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 21(2), June.
    4. Olabimtan Adebowale & David Lawson, 2018. "How does access to formal finance affect household welfare dynamics? Micro evidence from Nigeria," Global Development Institute Working Paper Series 242018, GDI, The University of Manchester.
    5. Muhammad Luqman, Sheer Abbas, Mudassar Yasin, Muhammad Yaseen, Muhammad Umer Mehmood, Shahbaz Ahmad, 2022. "Rural Poverty and Its Dimensions: Evidences from North-West Region of Pakistan," Journal of Economic Impact, Science Impact Publishers, vol. 4(2), pages 39-50.
    6. Amara Amjad Hashmi & Maqbool H. Sial & Maaida Hussain Hashmi, 2008. "Trends and Determinants of Rural Poverty: A Logistic Regression Analysis of Selected Districts of Punjab," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 47(4), pages 909-923.
    7. FAYE Ousmane & ISLAM Nizamul & ZULU Eliya, 2011. "Poverty dynamics in Nairobi's slums: testing for true state dependence and heterogeneity effects," LISER Working Paper Series 2011-56, Luxembourg Institute of Socio-Economic Research (LISER).
    8. Dr. ADEKOYA, Olusoji Adetayo, 2014. "Analysis of Farm Households Poverty Status in Ogun States, Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(3), pages 325-340, March.

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    More about this item

    Keywords

    Poverty transitions; characteristics of the poor; poverty dynamics; determinants of poverty; Malawi;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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