International Journal of Academic Research in Business and Social Sciences

search-icon

The Determinants of Poverty Revisited– Empirical Evidence from Romania’s Development Regions

Open access
The purpose of this paper is to provide new evidence on the determinants of poverty, a sensitive and challenging subject. Because Romania is considered to be one of the poorest countries of Europe, this research work examines its poverty phenomenon in depth, on its eight development regions, over the 2011 – 2022 time interval. Using data from National Institute of Statistics, our paper estimates simple and multiple regression models on panel data, focusing on the factors that influence Romanian poverty, finding out which are the most deprived areas and how one can act to eradicate it. The authors validate an indirect relationship between the poverty rate and economic prosperity, urbanization rate and Internet prevalence, and a direct relationship between poverty and unemployment rate, consumption rate and households with very low work intensity. Policy implications are drawn in order to reduce poverty.
Afzal, A., Firdousi, S. F., Waqar, A., Awais, M. (2022). The Influence of Internet Penetration on Poverty and Income Inequality. SAGE Open, 12(3).
Aksman, E. (2021). How much would it cost to eliminate the at-risk-of poverty rate? Evidence from the European Union. Economic Research-Ekonomska Istraživanja, 34(1), 1913-1930.
Balasubramanian, P., Burchi, F., Malerba, D. (2022). Does economic growth reduce multidimensional poverty? Evidence from low- and middle-income countries. World Development, 161.
Chen, Z., Liu, C., Yang, D. (2011). Information Poverty and Farmers’ Information Right in China's Mountainous Rural Areas. Procedia Engineering, 15, 1277-1281.
Dullah, M., Mori, K., Rozilee, A., Jaratin, L. (2012). Is economic growth sufficient for poverty alleviation? Empirical evidence from Malaysia. Cuadernos de Economía - Spanish Journal of Economics and Finance, 35(97), 26-32.
Fischer, J., Fluskova, H., Vltavska, K. (2020). At-Risk-of-Poverty Rate or Social Exclusion in Visegrad Countries 2005-2017: Impact of Changes in Households' Structure. Statistics & Economy Journal, 100, 351-364.
Gong, J., Wang, G., Wang, Y., Zhao, Y. (2022). Consumption and poverty of older Chinese: 2011–2020. The Journal of the Economics of Ageing, 23(C).
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E. (2010) Multivariate Data Analysis. Pearson, New York.
Islam, R. (2004). The nexus of economic growth, employment and poverty reduction: An empirical analysis. Geneva: Recovery and Reconstruction Department. International Labour Office.
Karnani, A. (2011). Reducing poverty through employment. Innovations: Technology, Governance, Globalization, MIT Press, 6(2), 73-97.
Mabughi, N., Selim, T. (2006). Poverty as Social Deprivation: A Survey. Review of Social Economy, 64(2), 181-204.
McKenzie, D., Sasin, M. J. (2007). Migration, Remittances, Poverty, and Human Capital: Conceptual and Empirical Challenges. World Bank Policy Research Working Paper 4272.
Montiel, M. J. M. (2016). The Digital Divide in Mexico: A Mirror of Poverty. Mexican Law Review, 9(1), 93-102.
Nguyen, M. H., Nguyen, D. L., Pham, T. K. (2021). The impact of urbanization on poverty reduction: An evidence from Vietnam. Cogent Economics & Finance, 9(1), 1-14.
Phan, V. P. (2023). Is the internet penetration pro-poor? Evidence from a panel data analysis. Telecommunications Policy.
Pressman, S. (1991). Keynes and Antipoverty Policy. Review of Social Economy, 49(3), 365-382.
Urean, C. A., Muresan, G. M., Armean, G. (2017). Determinants of Poverty in Romania. Annals- Economy Series, Constantin Brâncu?i University, Faculty of Economics 4, 204-210.
Zizzamia, R. (2020). Is employment a panacea for poverty? A mixed-methods investigation of employment decisions in South Africa. World Development, 130(C).