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WEIGHTING DIMENSIONS OF POVERTY BASED ON PEOPLES PRIORITIES: Constructing a Composite Poverty Index for the Maldives

Author

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  • Hans de Kruijk

    () (Erasmus University Rotterdam)

  • Martine Rutten

    () (Netherlands Ministry of Finance)

Abstract

We work with a panel of bilateral trade flows from 1988 to 2002, exploring the influence of infrastructure, institutional quality, colonial and geographic context, and trade preferences on the pattern of bilateral trade. We are interested in threshold effects, and so emphasize those cases where bilateral country pairs do not actually trade. We depart from the institutions and infrastructure literature in this respect, using Heckman selection model-based gravity estimators of trade flows. We also depart from this literature by mixing principal components (to condense our institutional and infrastructure measures) with a focus on deviations from expected values for given income cohorts to control for multicollinearity. Infrastructure, and institutional quality, are significant determinants not only of export levels, but also of the likelihood exports will take place at all. Our results support the notion that export performance, and the propensity to take part in the trading system at all, depends on institutional quality and access to well developed transport and communications infrastructure. Indeed, this dependence is far more important, empirically, than variations in tariffs in explaining sample variations in North-South trade. This implies that policy emphasis on developing country market access, instead of support for trade facilitation, may be misplaced.

Suggested Citation

  • Hans de Kruijk & Martine Rutten, 2007. "WEIGHTING DIMENSIONS OF POVERTY BASED ON PEOPLES PRIORITIES: Constructing a Composite Poverty Index for the Maldives," IIDE Discussion Papers 20070801, Institue for International and Development Economics.
  • Handle: RePEc:lnz:wpaper:20070801
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    Cited by:

    1. Dat Vu Hoang & Laure Pasquier-Doumer, 2016. "Weighting deprivations using subjective well-being: An application to the Multidimensional Child Poverty Index in Vietnam," Working Papers DT/2016/01, DIAL (Développement, Institutions et Mondialisation).
    2. Koen Decancq and Maria Ana Lugo, 2008. "Setting Weights in Multidimensional Indices of Well-Being," OPHI Working Papers ophiwp018, Queen Elizabeth House, University of Oxford.
    3. Gulnaz Hameed & Abdul Saboor & Atta Ullah Khan & Ikram Ali & Mohsin Khan Wazir, 2017. "Impact of Community Development in Poverty Reduction: Reflections of Azad Jammu and Kashmir Community Development Program," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(3), pages 1073-1086, February.
    4. repec:spr:soinre:v:136:y:2018:i:1:d:10.1007_s11205-016-1540-x is not listed on IDEAS
    5. Koen Decancq & María Ana Lugo, 2013. "Weights in Multidimensional Indices of Wellbeing: An Overview," Econometric Reviews, Taylor & Francis Journals, vol. 32(1), pages 7-34, January.
    6. Atta Ullah Khan & Abdul Saboor & Ikram Ali & Wasim Shahid Malik & Khalid Mahmood, 2016. "Urbanization of multidimensional poverty: empirical evidences from Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(1), pages 439-469, January.
    7. Fernandes, Liliana & Mendes, Américo & Teixeira, Aurora, 2013. "Assessing child well-being through a new multidimensional child-based weighting scheme index: An empirical estimation for Portugal," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 45(C), pages 155-174.
    8. Atta Khan & Abdul Saboor & Abid Hussain & Shumaila Sadiq & Abdul Mohsin, 2014. "Investigating Multidimensional Poverty across the Regions in the Sindh Province of Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 119(2), pages 515-532, November.
    9. Liliana Fernandes & Américo Mendes & Aurora Teixeira, 2013. "A Weighted Multidimensional Index of Child Well-Being Which Incorporates Children’s Individual Perceptions," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(3), pages 803-829, December.
    10. Saboor, Abdul & Khan, Atta Ullah & Hussain, Abid & Ali, Ikram & Mahmood, Khalid, 2015. "Multidimensional deprivations in Pakistan: Regional variations and temporal shifts," The Quarterly Review of Economics and Finance, Elsevier, vol. 56(C), pages 57-67.
    11. Shaffer, Paul, 2013. "Ten Years of “Q-Squared”: Implications for Understanding and Explaining Poverty," World Development, Elsevier, vol. 45(C), pages 269-285.
    12. Belhadj, Besma, 2012. "New weighting scheme for the dimensions in multidimensional poverty indices," Economics Letters, Elsevier, vol. 116(3), pages 304-307.
    13. Sophie Mitra & Kris Jones & Brandon Vick & David Brown & Eileen McGinn & Mary Alexander, 2013. "Implementing a Multidimensional Poverty Measure Using Mixed Methods and a Participatory Framework," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 110(3), pages 1061-1081, February.

    More about this item

    Keywords

    poverty measures; living standard dimensions; aggregation; composite index; Maldives;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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