IDEAS home Printed from https://ideas.repec.org/a/wly/povpop/v12y2020i4p357-385.html
   My bibliography  Save this article

Measuring efficiency of Indian states for reducing poverty using data envelopment analysis

Author

Listed:
  • Dilip Ambarkhane
  • Ardhendu Shekhar Singh
  • Bhama Venkataramani

Abstract

Sustainable development goals adopted by the United Nations in 2015 emphasize on poverty reduction and inclusive growth. In India, development policies focusing on poverty reduction have been implemented since independence. However, there is evidence of rising inequality and slowing down of the rate of poverty reduction, after the introduction of economic reforms. The state governments in India have an important role to play in poverty alleviation. Thus, it is necessary to measure the performance of the states in respect of the same. Data envelopment analysis is used by considering input variables, namely, growth, development expenditure, irrigation, and government performance. Percentage of non‐poor is used as an output variable. This paper measures efficiency with which poverty has been alleviated in 19 states covering 90% population, for the years 2006, 2010, and 2014. Resource‐rich states are found to be inefficient, whereas states with resource scarcity use them efficiently. Moreover, poor states with lower per capita gross domestic product (GDP) are found to be more efficient as compared to those with higher per capita GDP. The states with high incidence of poverty are found to be catching up with states with low incidence of poverty. It is found that inequality and high indebtedness adversely impact the efficiency of states. 2015年联合国采纳的可持续发展目标强调了减贫和包容性增长。在印度,聚焦减贫的发展政策自印度独立起便一直开展。然而在引入经济改革后,不平等和减贫率下降的现象便越来越多。印度各邦政府在减贫一事上负有重要作用。因此,有必要衡量各邦的减贫表现。 使用数据包络分析,对一系列输入变量进行考量,即(经济)增长、发展开支、灌溉和政府表现。非贫困人口百分比被用作输出变量。本文衡量了2006年、2010年和2014年19个邦的减贫效率,覆盖了90%人口。 发现资源丰富的邦的减贫效率低,而资源稀缺的邦的减贫效率高。此外,发现人均GDP较低的贫困邦与人均GDP更高的邦相比,前者的减贫效率更高。发现贫困数量更多的邦正在赶上贫困数量少的邦。发现不平等和高负债会以消极的方式影响各邦的减贫效率。 Los objetivos de desarrollo sostenible adoptados por las Naciones Unidas en 2015 hacen hincapié en la reducción de la pobreza y el crecimiento inclusivo. En India, las políticas de desarrollo centradas en la reducción de la pobreza se han implementado desde la independencia. Sin embargo, hay evidencia de un aumento de la desigualdad y una desaceleración de la tasa de reducción de la pobreza, después de la introducción de reformas económicas. Los gobiernos estatales de la India tienen un papel importante que desempeñar en el alivio de la pobreza. Por tanto, es necesario medir el desempeño de los estados con respecto a los mismos. El análisis de envolvente de datos se utiliza considerando variables de entrada, a saber, crecimiento, gasto de desarrollo, riego y desempeño del gobierno. El porcentaje de no pobres se utiliza como variable de salida. Este documento mide la eficiencia con la que se ha aliviado la pobreza en 19 estados que cubren el 90% de la población, para los años 2006, 2010, 2014. Los estados ricos en recursos resultan ineficientes, mientras que los estados con escasez de recursos los utilizan de manera eficiente. Además, los estados pobres con un PIB per cápita más bajo son más eficientes en comparación con aquellos con un PIB per cápita más alto. Se encuentra que los estados con alta incidencia de pobreza se están poniendo al día con los estados con baja incidencia de pobreza. Se encuentra que la desigualdad y el alto endeudamiento, impactan adversamente la eficiencia de los estados.

Suggested Citation

  • Dilip Ambarkhane & Ardhendu Shekhar Singh & Bhama Venkataramani, 2020. "Measuring efficiency of Indian states for reducing poverty using data envelopment analysis," Poverty & Public Policy, John Wiley & Sons, vol. 12(4), pages 357-385, December.
  • Handle: RePEc:wly:povpop:v:12:y:2020:i:4:p:357-385
    DOI: 10.1002/pop4.294
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/pop4.294
    Download Restriction: no

    File URL: https://libkey.io/10.1002/pop4.294?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. Ahluwalia, Montek S. & Carter, Nicholas G. & Chenery, Hollis B., 1979. "Growth and poverty in developing countries," Journal of Development Economics, Elsevier, vol. 6(3), pages 299-341, August.
    2. Indrani Gupta & Arup Mitra, 2004. "Economic Growth, Health and Poverty: An Exploratory Study for India," Development Policy Review, Overseas Development Institute, vol. 22(2), pages 193-206, March.
    3. Meng, Xin & Gregory, Robert & Wang, Youjuan, 2005. "Poverty, inequality, and growth in urban China, 1986-2000," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 710-729, December.
    4. Shenggen Fan & Peter Hazell & Sukhadeo Thorat, 2000. "Government Spending, Growth and Poverty in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 1038-1051.
    5. Mellor, J. W., 2002. "Irrigation, agriculture and poverty reduction: General relationships and specific needs," IWMI Books, Reports H029690, International Water Management Institute.
    6. Pradeep Agrawal, 2007. "Economic Growth and Poverty Reduction: Evidence from Kazakhstan," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 24(02), pages 90-115.
    7. Avkiran, Necmi K., 2001. "Investigating technical and scale efficiencies of Australian Universities through data envelopment analysis," Socio-Economic Planning Sciences, Elsevier, vol. 35(1), pages 57-80, March.
    8. Arvind Panagariya & Megha Mukim, 2014. "A Comprehensive Analysis of Poverty in India," Asian Development Review, MIT Press, vol. 31(1), pages 1-52, March.
    9. Planning Commission, 2006. "An Approach to the 11th Five Year Plan: Towards Faster and More Inclusive Growth," Working Papers id:569, eSocialSciences.
    10. Dillon, Andrew, 2011. "The Effect of Irrigation on Poverty Reduction, Asset Accumulation, and Informal Insurance: Evidence from Northern Mali," World Development, Elsevier, vol. 39(12), pages 2165-2175.
    11. Huang, Qiuqiong & Dawe, David & Rozelle, Scott & Huang, Jikun & Wang, Jinxia, 2005. "Irrigation, poverty and inequality in rural China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(2), pages 1-17.
    12. Augustin Kwasi Fosu, 2009. "Inequality and the Impact of Growth on Poverty: Comparative Evidence for Sub-Saharan Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 45(5), pages 726-745.
    13. David Dollar & Aart Kraay, 2004. "Trade, Growth, and Poverty," Economic Journal, Royal Economic Society, vol. 114(493), pages 22-49, February.
    14. Taiwo Peace Ogun, 2010. "Infrastructure and Poverty Reduction: Implications for Urban Development in Nigeria," WIDER Working Paper Series wp-2010-043, World Institute for Development Economic Research (UNU-WIDER).
    15. Intizar Hussain & Deeptha Wijerathna & Sigit Arif & Murtiningrum & Agnes Mawarni & Suparmi, 2006. "Irrigation, Productivity and Poverty Linkages in Irrigation Systems in Java, Indonesia," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 20(3), pages 313-336, June.
    16. Petia Topalova, 2007. "Trade Liberalization, Poverty and Inequality: Evidence from Indian Districts," NBER Chapters, in: Globalization and Poverty, pages 291-336, National Bureau of Economic Research, Inc.
    17. Dyckhoff, H. & Allen, K., 2001. "Measuring ecological efficiency with data envelopment analysis (DEA)," European Journal of Operational Research, Elsevier, vol. 132(2), pages 312-325, July.
    18. David Bloom & David Canning, 2003. "The Health and Poverty of Nations: From theory to practice," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 4(1), pages 47-71.
    19. Arsenio Balisacan & Ernesto Pernia & Abuzar Asra, 2003. "Revisiting growth and poverty reduction in Indonesia: what do subnational data show?," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 39(3), pages 329-351.
    20. Ogun, T. P., 2010. "Infrastructure and Poverty Reduction: Implications for Urban Development in Nigeria," WIDER Working Paper Series 043, World Institute for Development Economic Research (UNU-WIDER).
    21. World Bank, 2011. "Perspectives on Poverty in India : Stylized Facts from Survey Data," World Bank Publications - Books, The World Bank Group, number 2299, December.
    22. Ravallion, Martin & Datt, Gaurav, 2002. "Why has economic growth been more pro-poor in some states of India than others?," Journal of Development Economics, Elsevier, vol. 68(2), pages 381-400, August.
    23. Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April.
    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. Canavire Bacarreza, Gustavo J. & Puerta-Cuartas, Alejandro & Beverinotti, Javier, 2024. "Efficiency in Poverty Reduction: A State-Level Analysis for Bolivia," IZA Discussion Papers 16794, Institute of Labor Economics (IZA).

    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. Thorat, Sukhadeo, 2011. "Growth, Inequality and Poverty Linkages during 1983-2005: Implications for Socially Inclusive Growth," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 66(1), pages 1-32.
    2. Temilola Osinubi, Tolulope, 2020. "The Role Of Income Inequality In The Globalisation-Poverty Nexus: Empirical Evidence From Mint Countries," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 7(2), pages 67-89, June.
    3. Raihan, Selim, 2011. "Infrastructure and Growth and Poverty in Bangladesh," MPRA Paper 37882, University Library of Munich, Germany.
    4. Facundo Alvaredo & Leonardo Gasparini, 2013. "Recent Trends in Inequality and Poverty in Developing Countries," CEDLAS, Working Papers 0151, CEDLAS, Universidad Nacional de La Plata.
    5. Majumder, Rajarshi, 2012. "Removing poverty and inequality in India: the role of infrastructure," MPRA Paper 40941, University Library of Munich, Germany.
    6. Awaworyi Churchill, Sefa & Smyth, Russell, 2017. "Ethnic Diversity and Poverty," World Development, Elsevier, vol. 95(C), pages 285-302.
    7. Tarlok Singh, 2022. "Economic growth and the state of poverty in India: sectoral and provincial perspectives," Economic Change and Restructuring, Springer, vol. 55(3), pages 1251-1302, August.
    8. Muhammad Akbar & Abdullah & Amjad Naveed & Shabib Haider Syed, 2022. "Does an Improvement in Rural Infrastructure Contribute to Alleviate Poverty in Pakistan? A Spatial Econometric Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 162(1), pages 475-499, July.
    9. Aremo Aremo, 2014. "Trade liberalization, Economic Growth and Poverty Level in Nigeria: Vector Auto-regression (VAR) Approach (1980-2009)," Journal of Economics and Behavioral Studies, AMH International, vol. 6(7), pages 591-606.
    10. Khalid Sekkat, 2013. "Does Infrastructure Mitigate the Effect of Urban Concentration on Poverty in Developing Countries?," Working Papers 800, Economic Research Forum, revised Nov 2013.
    11. Shahid Hussain & Fangwei Zhu & Zaigham Ali & Xiaohang Xu, 2017. "Rural Residents’ Perception of Construction Project Delays in Pakistan," Sustainability, MDPI, vol. 9(11), pages 1-16, November.
    12. Ural Marchand, Beyza, 2012. "Tariff pass-through and the distributional effects of trade liberalization," Journal of Development Economics, Elsevier, vol. 99(2), pages 265-281.
    13. Oasis Kodila-Tedika & Simplice A. Asongu & Julio Mukendi Kayembe, 2016. "Middle Class in Africa: Determinants and Consequences," International Economic Journal, Taylor & Francis Journals, vol. 30(4), pages 527-549, October.
    14. Sushanta K. Mallick, 2014. "Disentangling the Poverty Effects of Sectoral Output, Prices, and Policies in India," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 773-801, December.
    15. Simplice A. Asongu & Jacinta C. Nwachukwu, 2017. "Recent finance advances in information technology for inclusive development: a survey," Research Africa Network Working Papers 17/009, Research Africa Network (RAN).
    16. Montalvo, Jose G. & Ravallion, Martin, 2010. "The pattern of growth and poverty reduction in China," Journal of Comparative Economics, Elsevier, vol. 38(1), pages 2-16, March.
    17. Aftab Ahmad, 2020. "Poverty Terrorism Nexus: A Case Study Of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 9(4), pages 162-172, December.
    18. Klasen, Stephan & Reimers, Malte, 2017. "Looking at Pro-Poor Growth from an Agricultural Perspective," World Development, Elsevier, vol. 90(C), pages 147-168.
    19. Gazi Salah Uddin & Phouphet Kyophilavong & Nasim Sydee, 2012. "The Casual Nexus of Banking Sector Development and Poverty Reduction in Bangladesh," International Journal of Economics and Financial Issues, Econjournals, vol. 2(3), pages 304-311.
    20. Uddin, Gazi Salah & Shahbaz, Muhammad & Arouri, Mohamed & Teulon, Frédéric, 2014. "Financial development and poverty reduction nexus: A cointegration and causality analysis in Bangladesh," Economic Modelling, Elsevier, vol. 36(C), pages 405-412.

    More about this item

    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:wly:povpop:v:12:y:2020:i:4:p:357-385. 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: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1944-2858 .

    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.