IDEAS home Printed from
   My bibliography  Save this paper

Poverty dynamics in Far-western Rural Hills of Nepal: Evidences from panel data


  • Joshi, Niraj Prakash
  • Maharjan, Keshav Lall
  • Piya, Luni


Poverty, being persistent and widespread, still remains core issue to be researched in Nepal. Moreover, there lacks study on dynamic aspects of poverty at the household level. Therefore, this study intends to capture the dynamics of poverty in poverty stricken Far-Western Rural Hill district of Baitadi based on panel data collected through field survey in 2001 and 2007. An empirical analysis is made by employing multinomial logit regression by dividing household into three categories; non-poor, transitory poor, and chronic poor. The results suggest that the incidence of poverty declined sharply between the study period, but is more favored in relatively well-off Village Development Committee (VDC), Patan. Similarly, excessively high proportion of Occupational Caste (OC) households are chronically poor, none of them were non-poor in both surveys. Moreover, the risk of them falling into chronic poverty is significantly higher. Also, female-headed household, and household with higher dependency ratio has significantly higher risk of falling into chronic poverty. However, landholding and irrigation coverage reduce the risk of households to fall into chronic poverty. Further, disaggregation of transitory poverty into move-into and move-out of poverty also shows higher risk of OC households to move-into poverty, mainly due to their limited socio-economic assets. In addition, the occurrence of natural disasters also increases the risk of households to move-into poverty. On the other hand, Increase in schooling years of household’s head and landholding help the household to move-out of poverty. Therefore, any poverty reduction program to deal with transitory as well as chronic poverty should focus relatively remote VDCs like Melauli. Similarly, OC households, whose major occupation is either agriculture or laboring, should be targeted. Poverty reduction programs should generate employment opportunities, which help to deal with both chronic as well as transitory poverty through a reduction in the dependency ratio. Similarly, introduction of temporary relief programs during occurrence of natural disasters will be very effective in dealing with transient poverty.

Suggested Citation

  • Joshi, Niraj Prakash & Maharjan, Keshav Lall & Piya, Luni, 2012. "Poverty dynamics in Far-western Rural Hills of Nepal: Evidences from panel data," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125785, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae12:125785

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Jyotsna Jalan & Martin Ravallion, 2000. "Is transient poverty different? Evidence for rural China," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 82-99.
    2. G. M. Arif & Faiz Bilquees, 2007. "Chronic and Transitory Poverty in Pakistan: Evidence from a Longitudinal Household Survey," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(2), pages 111-127.
    3. Joshi, Niraj Prakash & Maharjan, Keshav Lall & Piya, Luni, 2010. "Poverty and Food Insecurity in Nepal A Review," MPRA Paper 35387, University Library of Munich, Germany.
    4. Lipton, Michael & Ravallion, Martin, 1995. "Poverty and policy," Handbook of Development Economics,in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 41, pages 2551-2657 Elsevier.
    5. Mckay, Andrew & Lawson, David, 2003. "Assessing the Extent and Nature of Chronic Poverty in Low Income Countries: Issues and Evidence," World Development, Elsevier, vol. 31(3), pages 425-439, March.
    6. Joshi, Niraj Prakash & Maharjan, Keshav Lall, 2007. "Assessment of food self-sufficiency and food security situation in Nepal," MPRA Paper 35385, University Library of Munich, Germany.
    7. Joshi, Niraj Prakash & Maharjan, Keshav Lall, 2008. "A Study on Rural Poverty Using Inequality Decomposition in Western Hills of Nepal: A Case of Gulmi District," MPRA Paper 35386, University Library of Munich, Germany.
    8. Jalan, Jyotsna & Ravallion, Martin, 1998. "Determinants of transient and chronic poverty : evidence from rural China," Policy Research Working Paper Series 1936, The World Bank.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Charlery, Lindy & Walelign, Solomon Zena, 2015. "Assessing environmental dependence using asset and income measures: Evidence from Nepal," Ecological Economics, Elsevier, vol. 118(C), pages 40-48.

    More about this item


    poverty; chronic poverty; Baitadi; socioeconomic; multinomial logit.; Food Security and Poverty; I32; P46;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • P46 - Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:ags:iaae12:125785. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    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 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.