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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.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 1222.

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Date of creation: 12 Dec 2006
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Handle: RePEc:pra:mprapa:1222

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Keywords: Poverty transitions; characteristics of the poor; poverty dynamics; determinants of poverty; Malawi;

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References

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  1. Fields, Gary S. & Cichello, Paul & Freije, Samuel & Menéndez, Marta & Newhouse, David, 2003. "Household income dynamics : a four-country story," Economics Papers from University Paris Dauphine 123456789/1562, Paris Dauphine University.
  2. 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.
  3. 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.
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Cited by:
  1. FAYE Ousmane & ISLAM Nizamul & ZULU Eliya, 2011. "Poverty dynamics in Nairobi's slums: testing for true state dependence and heterogeneity effects," CEPS/INSTEAD Working Paper Series 2011-56, CEPS/INSTEAD.
  2. Richard Mussa, 2010. "Impact of Fertility on Objective and Subjective Poverty in Malawi," SALDRU Working Papers 50, Southern Africa Labour and Development Research Unit, University of Cape Town.
  3. 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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