Maharjan, Keshav Lall and Joshi, Niraj Prakash (2007): A Poverty Analysis in Baitadi District, Rural Far Western Hills of Nepal: An Inequality Decomposition Analysis. Published in: Nepalese Journal of Development and Rural Studies , Vol. 4, No. 2 (2007): pp. 16-35.
Download (302kB) | Preview
Occupational caste is deprived in terms of education, and landholding. Due to this laboring and agriculture (specially small animals like goats and poultry) remain the prominent source of income for them. Average income from salaried job is the highest followed by remittance and that from laboring is the lowest. This led to the high concentration of Occupational caste under third and fourth income quartile (poorer). A share of income from agriculture in total income is the highest and the share from laboring is the lowest. Relative concentration coefficient (RCC-ci or gi) shows salaried job has both the highest income disequalizing effect (ci = 1.56 or gi = 1.49) as well as the highest factor inequality weight (wici) followed by agriculture. In case of Melauli, however, salaried job followed by remittance has the highest income disequalizing effect. Negative values of Relative Concentration Coefficient and factor inequality weight for laboring indicate that income from it has the income equalizing effect. Thus, agricultural promotion in rural areas based on labor demand increasing policies with proper market arrangement for the agricultural produce will be helpful to reduce the income inequality. In addition, regulation regarding working hour and minimal wage rate should be strictly enforced for the welfare of those involved in laboring, which is also the poorest.
|Item Type:||MPRA Paper|
|Original Title:||A Poverty Analysis in Baitadi District, Rural Far Western Hills of Nepal: An Inequality Decomposition Analysis|
|Keywords:||Coefficient of variation; gini-coefficient; relative concentration coefficient; factor inequality weight|
|Subjects:||I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I32 - Measurement and Analysis of Poverty|
|Depositing User:||Niraj Prakash Joshi|
|Date Deposited:||13. Dec 2011 16:17|
|Last Modified:||24. Sep 2015 11:40|
Adams, R. H. and He, J. J. (1995). Sources of Income Inequality and Poverty in Rural Pakistan. Research Report 102. Washington, D. C.: International Food Policy Research Institute
Adhikari, J. (2000). Decisions for Survival: Farm Management Strategies in the Middle Hills of Nepal. Delhi: Adroit Publisher.
Bhatta, S. D., and Sharma, S. K. (2006). The Determinants and Consequences of Chronic and Transient Poverty in Nepal. CPRC Working Paper 66. UK: Chronic Poverty Research Center.
Bourguignon, F. (2004). The Poverty-Growth-Inequality Triangle. Paper presented at the Indian Council for Research on International Economic Relations, 4 February. New Delhi: ICRIEC.
Central Bureau of Statistics. (2002). Report on the Household Consumption Survey of Rural Nepal 2000/2001. Kathmandu: National Planning Commission Secretariat. CBS. [Retrieved from http://www.cbs.gov.np/Surveys/NHCS/Table%203.7.mht on 8th March 2007].
Central Bureau of Statistics. (2005a). Summary results on Poverty Analysis from Nepal Living Standards Survey (2003-04). Kathmandu: Secretariat of National Planning Commission. CBS.
Central Bureau of Statistics. (2005b). Poverty Trends in Nepal (1995-96 and 2003-2004). Kathmandu: National Planning Commission Secretariat. CBS.
Chandra, P. (2006). Nepal and Venezuela: Pure-and-Simple Revolutions. Counterpunch Newsletter, April 21, 2006. [Retrieved from http://www.counterpunch.org/chandra04212006.html on 12th March 2007].
Chhetry, D. (2001). Understanding Rural Poverty in Nepal. Paper Delivered at the Asia and Pacific Forum on Poverty: Reforming Policies and Institutions for Poverty Reduction, 5-9 February 2001. Manila: Asian Development Bank.
Chuhan, P. (2006). Poverty and Inequality. In: Bhargava, V. (ed.). Global Issues for Global Citizens; An Introduction to Key Development Challenges. Washington D. C: The World Bank.
Cornia, A. G. 2004. Inequality, Growth, and Poverty in an Era of Liberalization and Globalization (ed.). Oxford: Oxford University Press for UNU WIDER.
Heleniak, T. (2002). Population Growth Continues to Hinder Nepal’s Economic Progress. USA: Population Reference Bureau. [Retrieved from http://www.prb.org/Articles/2002/PopulationGrowthContinuestoHinderNepalsEconomicProgress.aspx?p=1 on 9th March 2007].
IF. (2003). Nepal: Trade and Competitiveness Study. Integrated Framework of Trade Related Technical Assistance to Least Developed Countries. New York: United Nations.
Joshi, N. P. and Maharjan, K. L. (2007). Assessment of Food Self-sufficiency and Food Security Situation in Nepal. Journal of International Development and Cooperation. Vol. 13, No 1 & 2 (Forthcoming).
Kakwani, N. C. (1977). Applications of Lorenz Curves in Economic Analysis. Econometrica, 45:3, pp 719-728.
Khattri-Chhetri, A., and Maharjan, K. L. (2006). Food Insecurity and Coping Strategies in Rural Areas of Nepal; A Case Study of Dailekh District in Mid Western Development Region. Journal of International Development and Cooperation Vol 12 No. 2 pp. 25-45.
Litchfield, J. A. (1999). Inequality: Methods and Tools. Washington D. C.: World Bank. [Retrieved from http://www1.worldbank.org/prem/poverty/inequal/methods/litchfie.pdf on 5th August 2006].
Maharjan, K. L. (2003). Peasantry in Nepal: A Study on Subsistence Farmers and Their Activities Pertaining to Food Security. Hiroshima, Japan: Research Center for Regional Geography.
Nissanke, M and Thorbecke, E. (2005). Channels and Policy Debate in the Globalization-Inequality-Poverty Nexus. Discussion Paper 2005/08. Helsinki, Finland: World Institute for Development Economics Research, United Nations University.
PDDP. (1999). Focus on Far West. PDDP Bulletin: Participatory District Development Program. NEP96/008. No. 8&9, Dec, 1999. Kathmandu: NPC/MLD/UNDP.
Prennushi, G. (1999). Nepal: Poverty at the Turn of the Twenty-First Century Main Report and Background Studies. Report No. IDP 174. Washington D. C.: World Bank.
Regmi, S. K. (1997). Nepal: Rural Poverty Alleviation Under Changing Economic Conditions. Paper presented on Regional Expert Meeting on Capability-Building to Alleviate Rural Poverty at Beijing, China. [Retrieved from http://www.unescap.org/rural/doc/beijing_march97/nepal.PDF on 5th March, 2007]
SAAPE. (2003). Nepal Poverty Report. In: Cunnington, D., A. Karki, M. Katel, R. Lohani, R. Segal and L. dVries (eds.). Poverty in South Asia 2003. Kathmandu: SAAPE. [Retrieved form http://www.saape.org.np/resources/publications/poverty_report03/nepal.pdf on 4th March 2007]
Saul, R., and Rai, U. (1998). Gender, Credit and Disadvantaged Groups in Jajarkot: A Situational Analysis. Kathmandu: Care Nepal Care International in Nepal. [Retrieved from http://www.carenepal.org/Care_nepal_Library/Project_Information/gender.pdf on 3rd March 2007]
Sheddon, D., and Adhikari, J. (2003). Conflict and Food Security in Nepal: A Preliminary Study. Kathmandu: Rural Reconstruction Nepal.
Shorrocks, A. F. (1982). Inequality Decomposition by Factor Components. Econometrica, 50:1, pp. 193-212.
Thorbecke, E. 2004. Conceptual and Measurement Issues in Poverty Analysis. WIDER Discussion Paper DP2004/04. Helsinki: UNU-WIDER.
UNDP. (2004). Nepal Human Development Report 2004: Empowerment and Poverty Reduction. Kathmandu: United Nations Development Program.
UNDP. (2005). Millennium Development Goals (MDGs) Progress Report, 2005. Kathmandu: United Nations Development Program.
Wan, G. H. (2001). Changes in Regional Inequality in Rural China: Decomposing the Gini Index by Income Sources. The Australian Journal of Agricultural and Resources Economics, 45:3, pp. 361-381.
Zhou, Z and Wan, G. 2003. Determinants of Income Inequality in Rural China: Decomposition using Household Data. Paper presented at International Conference on “Inequality, Poverty and Human Well-being”, 30-31 May, 2003. Helsinki: UNU-WIDER.