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Relationship between Income-poverty and Food insecurity in Rural Far-western Mid-hills of Nepal

  • Maharjan, Keshav Lall
  • Joshi, Niraj Prakash

For the purpose of this study, sample was selected through stratified random sampling from Baitadi district, which falls in rural Far-western Hills of Nepal. Both income and consumption measure of poverty revealed that problem of poverty is more severe in Melauli, which is relatively remote village devoid of transportation, communication, market, and other developmental services. Education, occupation, gender of household head, and family size are found to be the most important factors that affect income-poverty as well as consumption-poverty (food insecurity). Caste and landholding size has a significant effect on poverty when we consider food insecurity. Households with illiterate head, head engaged in laboring, female-head, larger family size, Occupational Caste household, and small holding are suffering from both income-poverty and consumption-poverty in greater extent. Income-poverty measure shows the higher incidence, gap, and severity of poverty compared to food insecurity for all the variables considered for the study. This could be due to inclusion of non-food expenses while constructing poverty line, and is also due nature of consumption itself, which is relatively continuous compared to income. However, in Melauli, incidence, depth, and severity of both poverty measures are closer. This may be due to shortcoming of income-poverty measure to take into account of spatial factor. Therefore, adoption of poverty line for whole region i.e., Rural Western Hills could mislead understanding of poverty. Thus, consumption-poverty is very relevant in the case where construction of location specific income-poverty line demands extra cost. This can further be justified by significantly higher chance of non-poor, in terms of income-poverty, being food insecure, and lower chance of income-poor being food secure in Melauli compared to Patan.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 35378.

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Date of creation: 18 Aug 2009
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Handle: RePEc:pra:mprapa:35378
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  1. Valerie Rhoe & Suresh Babu & William Reidhead, 2008. "An analysis of food security and poverty in Central Asia-case study from Kazakhstan," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(4), pages 452-465.
  2. Richard Bavier, 2008. "Reconciliation of income and consumption data in poverty measurement," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(1), pages 40-62.
  3. Carlos Gradín (a) & Olga Cantó & Coral del Río, . "Inequality, Poverty And Mobility: Choosing Income Or Consumption As Welfare Indicators," Working Papers 18-04 Classification-JEL , Instituto de Estudios Fiscales.
  4. S.R. Osmani & B.B. Bajracharya, 2008. "Nepal," Chapters, in: Handbook on the South Asian Economies, chapter 5 Edward Elgar.
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