What Is Incidence of Poverty and Factors Responsible for Poverty Reduction: A Study From Mandi Bahauddin

Abstract

This study aims to finds out the possible factors that are responsible for poverty reduction in Mandi Bahauddin. For it, study estimates the poverty for two different time-periods, one is 2011 and other is 2016. The data used for current study is based on the survey conducted for the year 2016. A sample of 100 respondents was selected from 27 union councils of Mandi Bahauddin. A Foster poverty index (FGT) was used for analysis. The result of study reveals that incidence, depth and severity of poverty in 2011 were 25, 17.99 and 16.74 percent while in 2016 was 18, 13.83 and 13.16 percent respectively. Increase in Foreign remittances, heavy investment and employment opportunities in informal sector and use of informal skills provide their valuable contribution in poverty reduction in the studied region. This study recommends that in order to bring poverty at its minimum level various developmental projects should be implemented by involving and taking financial help of informal sector in Mandi Bahauddin.

Keywords: Poverty Reduction, Foreign Remittances, Heavy Investment, Informal Sector, Logistic Regression