Pinnacle Business Management

(ISSN: 2360-946X)

December 2013, Vol.1 (1).

© Author(s) 2013. This work is distributed under the Creative Commons Attribution 3.0 License.

Research Article

 

Determinants of poverty in rural parts of Nepal: A study of Western Development Region

Arjun K. Thapa1, Ananta Raj Dhungana2 , Yub Raj Tripathi3 & Badri Aryal4

1Lecturer of Economics ,
School of Development & Social Engineering,
Pokhara University, Nepal.

2Lecturer of Statistics ,
School of Development & Social Engineering,
Pokhara University, Nepal.

3&4Lecturer,
School of Development & Social Engineering ,
Pokhara University, Nepal.

Accepted 15 December, 2013; Available Online 28 December, 2013

Abstract:

Poverty, especially in rural areas of developing countries like Nepal persists despite decades of development efforts. This study intends to analyze the major determinants of rural poverty. A multi stage sampling method was applied to generate cross sectional data by randomly selecting 279 households from one Village Development Committees of six districts of Western Development Region of Nepal. In this study area thirty three percent of households were lying below poverty line as per the poverty scoring method. By applying binary logistic regression, the study identified age of household head, size of land holding, female's involvement in service, family occupation and caste as major determinants of rural poverty. Contrary to general view, remittances do not show any significant effect on rural poverty as per this study. So it can be inferred that poverty in rural parts of Nepal is entangled in structural and cultural web, and the remittance sent by migrant family members to rural households might have been siphoned off to urban pocket areas. With large chunk of young rural population engulfed by international labor market and existing socio-economic structures, the policy makers need to address the rural poverty via social and cultural aspects.


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