Does Economic Growth Predict reduction of Multidimensional Poverty?

Souvik Mondal, Jawaharlal Nehru University

Introduction Multidimensional poverty, which extends beyond traditional monetary measures, encapsulates the various deprivations individuals face. Global MPI report by OPHI (2019) provides It highlighted that targeted interventions are necessary to reach the most deprived populations. Good governance is often linked to poverty reduction, but its impact on multidimensional poverty has received less attention Data We used the data from World Bank, United Nations Development Programme (UNDP), and the Oxford Poverty and Human Development Initiative for year 2010 and 2021. Method We have used correlation matrix to find out the correlation of MPI with outcome variable. OLS regression was used to examine the effect of economic and regional factors. A 2SLS used to addresses endogeneity using Infant Mortality rate as an instrument for Labour Force participation of Female. Additionally, we estimate a model incorporating both the absolute values and change values of the covariates, with the change in MPI as the outcome variable. Result The analysis shows that the Total Fertility Rate (TFR) is a significant factor influencing the Multidimensional Poverty Index (MPI) across both 2010 and 2021. TFR's correlation with MPI is strong, whereas income indicators like GNI per capita show limited significance. This suggests that fertility rates play a more critical role in explaining MPI variations than income levels.

Keywords: Inequality, Disadvantage and Discrimination, Data and Methods, Economic Demography, Fertility

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