IDEAS home Printed from https://ideas.repec.org/a/rnd/arjebs/v4y2012i10p595-602.html

Poverty Measurement and Choice of Poverty Reduction Strategy: The Importance of Poverty Measurement in Determining the Right Strategy

Author

Listed:
  • Rudy Badrudin

Abstract

This study aimed at testing the poverty measurement and the choice of poverty reduction strategy by using the data in four regencies and one municipal in Special Province of Yogyakarta (Indonesia). The study observed the number of poor people in those regions for eight-year periods (2001-2008) after the Law of Local Government Autonomy was in force in 2000. By using averagely 140 observations for each regency and municipal and employing ANOVA 2-Ways Analysis, the empirical results surprisingly revealed that only one regency and municipal produced nearly correct measurement on poverty. As to inter-temporal comparisons of the poverty number for each region, the statistical testing validated the inconsistency of poverty measure used. It gave evidence that the choice of poverty lines and poverty measures was a product of local government’s arbitrary decision, and of course, based on the finding; it called for robustness analysis of the poverty measurement used by the local government. To this respect, the choice of poverty reduction strategy should be seen as the free-vested interest decision in determining the poverty measurement. It needs a customization strategy based on the measure taken.

Suggested Citation

  • Rudy Badrudin, 2012. "Poverty Measurement and Choice of Poverty Reduction Strategy: The Importance of Poverty Measurement in Determining the Right Strategy," Journal of Economics and Behavioral Studies, AMH International, vol. 4(10), pages 595-602.
  • Handle: RePEc:rnd:arjebs:v:4:y:2012:i:10:p:595-602
    DOI: 10.22610/jebs.v4i10.360
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/360/360
    Download Restriction: no

    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/360
    Download Restriction: no

    File URL: https://libkey.io/10.22610/jebs.v4i10.360?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. Sabina Alkire, 2013. "Choosing Dimensions: The Capability Approach and Multidimensional Poverty," Palgrave Macmillan Books, in: Nanak Kakwani & Jacques Silber (ed.), The Many Dimensions of Poverty, chapter 6, pages 89-119, Palgrave Macmillan.
    2. Kaliappa Kalirajan & Kanhaiya Singh, 2009. "The pace of poverty reduction across the globe: an exploratory analysis," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 36(6), pages 692-705, May.
    3. Minh Quang Dao, 2004. "Rural poverty in developing countries: an empirical analysis," Journal of Economic Studies, Emerald Group Publishing, vol. 31(6), pages 500-508, October.
    4. Sudhir Anand & Martin Ravallion, 1993. "Human Development in Poor Countries: On the Role of Private Incomes and Public Services," Journal of Economic Perspectives, American Economic Association, vol. 7(1), pages 133-150, Winter.
    5. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-764, July.
    6. Shaohua Chen & Martin Ravallion, 2010. "The Developing World is Poorer than We Thought, But No Less Successful in the Fight Against Poverty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(4), pages 1577-1625.
    7. Lars Osberg & Kuan Xu, 2008. "How Should We Measure Poverty in a Changing World? Methodological Issues and Chinese Case Study," Review of Development Economics, Wiley Blackwell, vol. 12(2), pages 419-441, May.
    8. Edmar L. Bacha (ed.), 1994. "Economics in a Changing World," International Economic Association Series, Palgrave Macmillan, number 978-1-349-23458-5.
    9. Harold Alderman & Christina H. Paxson, 1994. "Do the Poor Insure? A Synthesis of the Literature on Risk and Consumption in Developing Countries," International Economic Association Series, in: Edmar L. Bacha (ed.), Economics in a Changing World, chapter 3, pages 48-78, Palgrave Macmillan.
    10. Pollitt, Christopher & Bouckaert, Geert, 2004. "Public Management Reform: A Comparative Analysis," OUP Catalogue, Oxford University Press, edition 2, number 9780199268498.
    Full references (including those not matched with items on IDEAS)

    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. Alkire, Sabina & Santos, Maria Emma, 2014. "Measuring Acute Poverty in the Developing World: Robustness and Scope of the Multidimensional Poverty Index," World Development, Elsevier, vol. 59(C), pages 251-274.
    2. Filandri, Marianna & Pasqua, Silvia & Struffolino, Emanuela, 2020. "Being Working Poor or Feeling Working Poor? The Role of Work Intensity and Job Stability for Subjective Poverty," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 147(3), pages 781-803.
    3. Martin Ravallion, 2012. "Mashup Indices of Development," The World Bank Research Observer, World Bank, vol. 27(1), pages 1-32, February.
    4. Duangkamon Chotikapanich & William Griffiths & Wasana Karunarathne & D.S. Prasada Rao, 2013. "Calculating Poverty Measures from the Generalised Beta Income Distribution," The Economic Record, The Economic Society of Australia, vol. 89, pages 48-66, June.
    5. Renata Baborska & Emilio Hernandez & Emiliano Magrini & Cristian Morales-Opazo, 2020. "The impact of financial inclusion on rural food security experience: A perspective from low-and middle-income countries," Review of Development Finance Journal, Chartered Institute of Development Finance, vol. 10(2), pages 1-18.
    6. Sawada Yasuyuki & Shoji Masahiro & Sugawara Shinya & Shinkai Naoko, 2014. "The Role of Infrastructure in Mitigating Poverty Dynamics: The Case of an Irrigation Project in Sri Lanka," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(3), pages 1117-1144, July.
    7. Ravallion, Martin, 1994. "Measuring Social Welfare with and without Poverty Lines," American Economic Review, American Economic Association, vol. 84(2), pages 359-364, May.
    8. Adriana D. Kugler, 2001. "From severance pay to self-insurance: Effects of severance payments savings accounts in Colombia," Economics Working Papers 592, Department of Economics and Business, Universitat Pompeu Fabra.
    9. Santos, Paulo & Barrett, Christopher B., 2011. "Persistent poverty and informal credit," Journal of Development Economics, Elsevier, vol. 96(2), pages 337-347, November.
    10. Sabina Alkire & James Foster, 2011. "Understandings and misunderstandings of multidimensional poverty measurement," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(2), pages 289-314, June.
    11. Sean Higgins & Nora Lustig, 2015. "Can Poverty-Reducing and Progressive Tax and Transfer System Hurt the Poor?," Commitment to Equity (CEQ) Working Paper Series 1333, Tulane University, Department of Economics.
    12. Higgins, Sean & Lustig, Nora, 2016. "Can a poverty-reducing and progressive tax and transfer system hurt the poor?," Journal of Development Economics, Elsevier, vol. 122(C), pages 63-75.
    13. Margitic, Juan & Ravallion, Martin, 2019. "Lifting the floor? Economic development, social protection and the developing World's poorest," Journal of Development Economics, Elsevier, vol. 139(C), pages 97-108.
    14. Ravallion, Martin & Chen, Shaohua, 2019. "Global poverty measurement when relative income matters," Journal of Public Economics, Elsevier, vol. 177(C), pages 1-1.
    15. Ravallion, Martin, 2010. "The Developing World's Bulging (but Vulnerable) Middle Class," World Development, Elsevier, vol. 38(4), pages 445-454, April.
    16. Sébastien Dessus & Santiago Herrera & Rafael De Hoyos, 2008. "The impact of food inflation on urban poverty and its monetary cost: some back‐of‐the‐envelope calculations," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 417-429, November.
    17. Philipp Ager & Casper Worm Hansen & Lars Lønstrup, 2014. "Church Membership and Social Insurance: Evidence from the American South," Discussion Papers 14-29, University of Copenhagen. Department of Economics.
    18. Pushan Dutt & Ilia Tsetlin, 2021. "Income distribution and economic development: Insights from machine learning," Economics and Politics, Wiley Blackwell, vol. 33(1), pages 1-36, March.
    19. Kugler, Adriana D., 2005. "Wage-shifting effects of severance payments savings accounts in Colombia," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 487-500, February.
    20. repec:qeh:ophiwp:ophiwp059 is not listed on IDEAS
    21. repec:qeh:ophiwp:ophiwp007_5 is not listed on IDEAS
    22. Arjun S. Bedi & Sparrow, R.A., 2014. "Sickness and death," ISS Working Papers - General Series 51366, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.

    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:rnd:arjebs:v:4:y:2012:i:10:p:595-602. 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: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/jebs .

    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.