Factors Affecting the Magnitude of Poor Families Across the Philippines: A Cross Section Data Analysis

Deluna, Roperto Jr (2011): Factors Affecting the Magnitude of Poor Families Across the Philippines: A Cross Section Data Analysis.

Abstract

This study is conducted to determine the factors affecting magnitude of poor families in the Philippines and measure the effect of the variables presented. The model was estimated using the Ordinary Least Square (OLS) procedure and cross sectional data set consisting of the 16 regions in the Philippines in the year 2000. The four variables that are found to have significant coefficients are gross regional domestic product (GRDP), functional literacy rate of the population 10-64 years old, number of persons with disabilities, and percentage of household with at least one land owned. Specifically, a peso increase in GRDP decreases the magnitude of poor families by 1 family. When the functional literacy rate increases by one percent decreases the number of poor families by 10,426 families. A unit increase in the number of persons with disability increases the number of poor families by around 4 families. While a percentage increase in the number of family with access to land by at least one land decreases the magnitude of poor families by 5,633 families. Result of the estimation shows that 81% of the variability of the magnitude of poor families in the Philippines can be explained by the predictors of the Model.

• Item Type: MPRA Paper
• Language: English
• Keywords: OLS, Poverty, Factors of Poverty
• Subjects: R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R10 - General; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C21 - Cross-Sectional Models ; Spatial Models ; Treatment Effect Models ; Quantile Regressions; C - Mathematical and Quantitative Methods > C0 - General > C01 - Econometrics

References

Acton, N. (1983), World Disability: The Need for a New Approach, in Shirley.

ADB. 1999. Fighting Poverty in Asia and the Pacific: The Poverty Reduction Strategy of the Asian Development Bank. Manila.

Brock, K. (1999) A Review of Participatory Work on Poverty and Illbeing, Consultations with the Poor, Prepared for Gloval Synthesis Workshop, September 22-23, 1999, Poverty Group, PREM, World Bank, Washington, DC.

Bigsten, A., Kebede, B., Shimeles, A. and Taddesse, M. (2003) Growth and Poverty Reduction in Ethiopia: Evidence from Household Panel Surveys, World Development, 31(1), 87-106

Danao, R. A (2002), Introduction to Statistics and Econometrics, University of the Philippines Press.

Elwan, A. (1999). “Poverty and Disability: A Survey of the Literature,” SP Discussion Paper No. 9932. The World Bank, December 1999.

Hoogeveen, J. (2005). “Measuring Welfare for Small but Vulnerable Groups: Poverty and Disability in Uganda,” Journal of African Economies, Vol. 14, No. 4, pp.603- 631, August 2005.

Mukherjee, S. and Benson, T. (2003) The Determinants of Poverty in Malawi 1998, World Development, 31(2), 339-358

Ravallion, M. and Datt, G. (2002) Why Has Economic Growth Been More Pro-Poor in Some States of India Than Others? Journal of Development Economics, 68(2), 381-400

The World Bank. (2000). Making Transition Work for Everyone: Poverty and Inequality in Europe and Central Asia. August 2000.

The World Bank. (2001). World Development Report, 2000/2001 Attacking Poverty.

The World Bank. (2007). People with Disabilities in India: From Commitment to Outcomes. May 2007.

Yadap, R., (2008). Relationship between literacy and poverty: Poverty Outlook, series 1.

Yeo, R. and K. Moore. (2003). “Including Disabled People in Poverty Reduction Work: Nothing About Us, Without Us,” World Development, Vol. 31, No. 3 pp.571-590, 2003.