Shocks Informal Risk Sharing Strategies And Poverty Dynamics In Rural Ethiopia Longitudinal Analysis

Based on ERHS data, the study used two-step dynamic nonlinear panel data model tornanalyze poverty dynamics, the implication of shocks and informal risk sharing strategiesrnon poverty dynamics. The model better explains the dynamic process of rural poverty inrnEthiopia, which reveals the existence of true state dependence. Size of land owned,rnnumber of oxen, male headship and higher educational attainments reduces the risk ofrnpoverty. Only drought sock and death experienced between I 977-1 983 E.C. have long termrnimpact on poverty dynamics, whereas the impact of idiosyncratic shocks is wiped outrnshortly. Many of informal risk sharing strategies significantly reduce current poverty.rnBut in the long-tem receiving remittance and food gift prolongs poverty. While lending tornothers and membership in Eqqub have poverty reducing impact both currently and in thernlong-tem.

Get Full Work

Report copyright infringement or plagiarism