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SELLING OUR WAY INTO POVERTY: The Commercialisation of Poverty in Malawi

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  • Bokosi, Fanwell Kenala

Abstract

The aim of the article is to investigate the impact of commercialisation on household poverty in Malawi using the 1997/98 Integrated Household Survey data. The results indicate that overall those household who were more commercialised were better off than those who did not and thus commercialisation should be encouraged as a means of alleviating poverty. In terms of regional analysis the southern region and the central region results indicate that the more commercialised households were actually worse off. Furthermore, the livelihoods of the most vulnerable households (female headed and poor households) did not benefit from commercialisation. Therefore, in terms of policies, it is important that government should identify groups that are likely losers to commercialisation and hence the need for compensatory or socially protective policy design to socio-economic groups whose incomes have been reduced by commercialisation.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 7087.

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Date of creation: 14 Jan 2008
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Handle: RePEc:pra:mprapa:7087

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Keywords: Commercialisation; Poverty; Propensity Score Matching; Household Model; Malawi;

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  1. Richard Blundell & Monica Costa Dias, 2009. "Alternative Approaches to Evaluation in Empirical Microeconomics," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
  2. James J. Heckman & Salvador Navarro-Lozano, 2003. "Using Matching, Instrumental Variables and Control Functions to Estimate Economic Choice Models," NBER Working Papers 9497, National Bureau of Economic Research, Inc.
  3. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  4. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
  5. Michael Lechner, 2005. "Some practical issues in the evaluation of heterogeneous labour market programmes by matching methods," Labor and Demography 0505006, EconWPA.
  6. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Wiley Blackwell, vol. 65(2), pages 261-94, April.
  7. repec:nbr:nberwo:11175 is not listed on IDEAS
  8. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
  9. Dehejia, Rajeev, 2005. "Practical propensity score matching: a reply to Smith and Todd," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 355-364.
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