Department of Economics and Finance

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Subject: search.filters.subject.Poverty

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Now showing 1 - 9 of 9
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    Energy poverty and human development: Empirical evidence from rural Rajasthan, India
    (Sage, 2023-02) Giri, Arun Kumar; Arora, Rahul
    This study attempts to establish the linkage between human development and energy poverty for rural households and evaluate the impact of government schemes such as Pradhan Mantri Ujjwala Yojana, free electricity and unemployment allowance on human development. For the analysis purpose, primary data have been collected from rural areas of two main districts of the Shekhawati region of the state of Rajasthan in India. To pursue the objectives, two measures of energy poverty – energy deprivation and the multidimensional energy poverty index – and one measure of human development – the human development index – have been constructed. The primary survey of 1,000 households is conducted from January to March 2020. For establishing the empirical relationship, the study has used Tobit regression analysis. The findings confirm the hypothesis that the existence of energy poverty adversely affects the level of human development in the region. It also confirms the other side of the relationship, which states that increasing human development reduces energy poverty through various linkages. The study results reveal that the government scheme which directly contributes to the per capita income is also impacting positively human development through an increase in income. Hence, to improve the level of human development and to decline energy poverty, the study recommends policies to improve the overall level of income of households.
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    Analyzing Poverty and Inequality Dynamics across North-Eastern States of India
    (IARIW, 2017) Padhi, Balakrushna
    This study intends to explore the poverty inequality dynamics across North Eastern States (NES) of India during recent decade. Based on NSSO’s Consumer Expenditure Survey Rounds an analysis has been carried out for two time points i.e. 2004-05 (61st round) and 2011-12 (68th round) to examine the changing pattern of poverty and inequality in these regions by decomposing changes in poverty in to growth, redistribution and interaction components. This paper used headcount ratio to measure poverty, Gini Index as well as poverty decomposition method (Datt and Ravallion, 1992) to quantify the relative contribution of economic growth and redistribution to changes in poverty. The results depict that the NES are quite different in terms of basic socioeconomic attributes from the mainland as per the level of development. As per the decomposition results the growth mean effect and redistribution component determines the rise or fall in the poverty effect. States where economic reforms were initiated properly with other developmental activities those NES performs better than the rest in terms of the said effects
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    A Poverty Decomposition Analysis for the Northeastern Region of India
    (Sage, 2020) Padhi, Balakrushna
    This study examines the changing structure of poverty and inequality for the northeastern states (NES) of India during the last two decades (1993–94 to 2011–12), by using the modified Kakwani poverty decomposition methodology, analysed by Bhanumurthy and Mitra (2004) based on the National Sample Survey Organisation’s (NSSO) consumer expenditure rounds. The estimates indicate that except for three states (Nagaland, Mizoram and Arunachal Pradesh), all other NES observed a decline in poverty, and Tripura recorded the highest decline in poverty in the second period (2004–05 to 2011–12). Further, an analysis of poverty–growth elasticity (PGE) reveals that only Arunachal Pradesh (0.200), Mizoram (0.412) and Nagaland (1.535) have greater PGE in the second period. A decomposition exercise of changing levels of poverty in terms of the three components—the growth effect, the inequality effect and the population shift effect—confirms that the positive impact of growth could not nullify the negative inequality impact on poverty.
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    Is Poverty Comparable Across Varying Size of Population Among Indian States?
    (Springer, 2015) Padhi, Balakrushna
    The most popular measure of poverty, ie the head count ratio is undoubtedly a simple measure with inadequacies of comparison. It also suffers from the mismatched contradiction between the count of the poor and their share in the population. Such inadequacies point towards the limitation in comparing poverty head count ratio across varying population sizes. The comparison of this measure between not only varying population sizes but also varying shares of the poor and the non-poor is worth contemplating in case it derives upon the ill-fare of poverty. Given these concerns, the measure of poverty accounting for its absolute count, intensity as well as inequality is proposed here as a modified version of the Sen, Shorrocks and Thorn (SST) measure of poverty. Further, a decomposition exercise is carried out to comprehend the share of each of its components in the changing level of poverty which is illustrated using the Indian data set. The salient observation made here relates to declining poverty levels in Indian states being in disagreement with reduced ill-fare as the poverty gap is on a rise along with the count of the poor. This raises apprehensions as to whether poverty reduction has to less to the do with the changing state of the poor rather than the changing state of the non-poor.
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    Poverty, Inequality and Relative Deprivation Among Northeastern States of India: Evidence from NSS
    (Springer, 2017) Padhi, Balakrushna
    One of the foremost objectives of post-independence Indian planning has been to eradicate poverty, reduce inequality, thus improving the lives of those battered by deprivation and suffering. With some of the initiatives by government, presently Indian economy is experiencing higher growth since last two decades of new economic policy regime. So it is an appropriate time to review and examine the precise impact of reform process on poverty, inequality and deprivation. The objective of this present study is to examine poverty, inequality and relative deprivation among northeastern states of India during 2004–05 (61st Round) and 2011–12 (68th Round) of NSSO’s Consumer Expenditure Survey Rounds data. This chapter used headcount ratio to measure poverty, relative deprivation index to understand the level of deprivation among the northeastern states of India. In addition, we have used Gini Coefficient for inequality prevalence. Our analysis depicts that the headcount poverty ratio of Tripura has highest in rural northeastern states, which has worse than national averages in 2004–05. Results also divulge that states like Sikkim, Mizoram, Tripura and Meghalaya have less than 10% poverty level in 2011–12 in urban area. The highest reduction in poverty has shown in rural Tripura during 2004–05 to 2011–12. The urban poverty is lower for all the states than rural area. Further results of relative deprivation show that, only Tripura is relative deprived state in rural whereas Sikkim and Manipur in Urban during 2004–05. The number of relative disadvantages states has increased in 2011–12 for both rural and urban. The highest relative disadvantages are in Arunachal Pradesh for rural, and in Manipur for the urban area during 2011–12. The highest relatively advantages are Nagaland in 2004–05 and Sikkim 2011–12 for both place in rural and urban among all the northeastern states. Relative disadvantages have increased or relative advantages have decreased during 2011–12 from 2004–05 in all northeastern states except for Tripura and Sikkim in rural. I
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    Poverty and inequality in Odisha, India
    (Wiley, 2020-07) Padhi, Balakrushna
    Odisha has gone on from being the most underdeveloped Indian state to be the state that has recorded the highest decline in poverty among the states. We undertake decomposition analyses to assess the redistributive changes in poverty and inequality over the period 1993–1994 and 2011–2012 across regions and social groups, examining the NSSO Consumer Expenditure Survey data. We find that while Odisha has succeeded in substantially reducing both rural and urban poverty incidence, this change has not met desirable subgroup-specific variations. Among regions, southern and northern Odisha have not kept pace with coastal Odisha in poverty reduction during the study period. The rate of poverty reduction for the Scheduled Tribes and the Scheduled Castes has been dismal. Overall, we found the growth effects on poverty reduction to be more prominent over inequality effects and population shift effects on poverty, although these effects varied in contexts. While inequality in urban regions rose, it declined in rural regions. While at the state-level, the within-group inequality has declined between 2004–2005 and 2011–2012 (coincident with the present Naveen Patnaik rule); the between-group inequality has increased during the period. Rural Odisha has seen a reduction in both within-group and between-group disparities, whereas urban Odisha has fared the opposite.
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    Regional Estimates of Poverty and Inequality in India, 1993–2012
    (Springer, 2015-06) Padhi, Balakrushna
    Using three quinquennial rounds of consumption expenditure data over two decades (1993–2012), this paper estimates the extent of money metric poverty and inequality in regions of India. Regions are made comparable, and the poverty head count ratio and the poverty gap ratio for 81 regions are derived using the state specific poverty lines as recommended by the Planning Commission of India. The gini index, rich–poor ratio and regression analyses are used to understand the extent of economic inequality in regions of India. Results indicate that though the extent of poverty has declined, economic inequality has increased in regions of India. During 1993–2012, the poverty head count ratio had decreased in 70 regions, increased in seven regions and remained similar in four regions of India. The southern regions of Odisha and southern regions of Chhattisgarh are reeling under high persistent poverty. The spread in poverty head count ratio among regions has increased from 0.38 in 1993–1994 to 0.64 in 2011–2012 confirming divergence in regional poverty in India. The pattern is similar with respect to poverty gap ratio. Regions of Tripura and Sikkim had highest improvements in poverty level. On contrast to poverty estimates, the gini index has decreased in 20 regions and increased in 61 regions. Likewise, 57 regions have recorded increase in rich–poor ratio. The rich–poor ratio was higher in developed regions and lower in less developed regions. Based on these findings, we suggest that regions with persistently high poverty be accorded priority in poverty alleviation program and explore the factors leading to increasing economic inequality.
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    Dynamics of poverty and its determinants in rural India: Evidence from longitudinal farm households
    (Wiley, 2021-02) Giri, Arun Kumar; Mohapatra, Geetilaxmi
    his study examined the determinants of unidimensional and multidimensional poverty among the farm households of rural India, using the data of India Human Development Surveys conducted in 2004–2005 and 2011–2012. We found a significant reduction in poverty among these households over this period. However, this reduction was not uniform across different sub-groups of the farm households. Our findings confirm that the important factors of poverty dynamics in India are educational attainment, number of household members, and caste. We observed that caste and household size considerably impacted the unidimensional poverty significantly, but not the multidimensional poverty, which was affected more by the education level of the heads of household. The study concludes that unidimensional poverty significantly matters for multidimensional poverty and vice versa in terms of determining poverty dynamics. Hence, target-based interventions in education, nutrition, and better access to water and sanitation, particularly to lower social groups (schedule classes, scheduled tribes, and other backward classes) help in reducing multidimensional poverty in rural India.
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    Foreign capital inflows and poverty linkages in South Asia: Do the forms of capital inflows matter?
    (Elsevier, 2022-09) Giri, Arun Kumar; Mohapatra, Geetilaxmi
    The relationship between foreign direct investment and poverty reduction has received modest attention in the empirical literature. However, little is known about the relative significant impact of different forms of capital inflows on poverty reduction. This study attempts to investigate the impact of different forms of capital inflows (foreign direct inflows, portfolio equity and portfolio debt inflows) on poverty reduction in major South Asian economies during the post-reform period. The capital inflows-poverty nexus is explored using panel econometric methods robust to cross-sectional dependence. Our empirical results show that while portfolio equity inflows exert a favorable impact on poverty reduction, foreign direct inflows and debt inflows fail to influence poverty. The panel causality results demonstrate that portfolio equity inflows also support poverty alleviation via stimulating economic growth and trade openness. The findings of our study highlight the importance of considering the differential welfare impacts of different forms of capital inflows while implementing capital account liberalization.