Regression Analysis: The Multidimenverty Poverty

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The multidimensional poverty index (MPI) analysis is based on three dimensions (education, health and living standards) and each dimension has indicators; (education indicators are year of schooling and school attendance, health indicators are child mortality and nutrition and living standards indicators are sanitation, electricity, cooking fuel, drinking water, floor and assets). The principle for MPI is that a person is declared poor if he or she is deprived at least one third of the weighed indicators within the dimension. However, the results show that MPI is 0.332 (table 10), means at least one third of the Tanzanian are deprived at least one of the dimensions.
By following the trend of growth of different factors in figure 5 that trigger to the regression analysis, the figure shows all parameters growing with different rates.
Regression analysis was done to see what are the factors that affect poverty. The results of the analysis …show more content…

The analysis of the survey data of 2007/2008 and data from census of 2012 gave clear indication that rural development and informal sector activities are direct drivers to the poverty reduction. Inclusion of informal sectors in the economic growth proved to be an important transmission mechanism that allowed the poor to participate in economic growth opportunities originating in the rural development initiatives. The results of this paper support Utz (2008) findings which stipulated that although economic growth was significantly higher in urban than in rural areas in the period from 1990/01 to 2000/01, modest rural growth has clearly dominated the faster urban growth with respect to its effect on poverty reduction. In 2000-2012 the economic growth effect on poverty reduction was unnoticed due to high increase in population in the same

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