The Determinant Of Poverty Dynamics In Ethiopia
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Date
2021-08
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Addis Ababa University
Abstract
This study examines the determinants of poverty dynamics in Ethiopia. Poverty reduction
has been the crucial issue for the development of the nation. But alleviating poverty has
becomes difficult due to the structure and complexity of poverty. It became more
unsolvable with policies and development programs. This study applies the spell
approach of poverty experience and the ordered logit model to identify the poverty status
of households: poor, transient poor (-), transient poor (+) and non-poor. Observing the
ESS balanced panel dataset of 2011/12, and 2013/14 covering 3,777 rural households,
from the study finding 70.13% of poor households classified as chronic poor (remained
poor in two periods) while 8.93% of non-poor households are vulnerable to being
transient poor (-). And observing the ESS balanced panel dataset of 2013/14, and
2015/16 covering 4,547 households, the study finding is 43.39% of poor households
classified as chronic poor (remained poor in two periods) while 18.76% of non-poor
households are vulnerable to being transient poor (-) Our estimations confirmed that the
important factors of poverty dynamics in Ethiopia are occupation of household head,
ownership of house, dependency ratio, number of household members, distance from the
market, non-farm income, educational status of household head, and age of household
head. The finding implies that in the rural part of Ethiopia chronic poverty is higher.
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Keywords
complexity of poverty, study examines, poverty experience, households: poor