dc.description.abstract |
Poverty and conflict have emerged as the most serious threats to long-term growth
since the end of the Cold War. A catastrophic violent war has been occurring in
northern Ethiopia since November 4, 2020. Much of the early research on the impacts
of armed conflict has focused on the macro-level relationships between conflict, and
economic growth and development outcomes. There has been little quantitative
research on the multidimensional wellbeing implications of armed conflict at the microlevel.
Then, this paper used micro-survey data to conduct an empirical test using the
propensity score matching method to study the impact of conflict on multidimensional
poverty. Alkire-foster methodology was used for poverty analysis at individual level due
its growing popularity in the field. In addition, the empirical validity of including
subjective wellbeing dimensions and frequency-based-weighting of dimensions in
poverty analysis was tested. A cross-sectional survey was conducted with 626 and 571
randomly selected individuals from conflict-affected and non-affected areas,
respectively. According to the findings, the multidimensional poverty index (MPI) in the
conflict-affected area was 46.4%, with 79.1% incidence and 58.6% intensity of
multidimensional poverty. In the non-affected area, MPI was estimated to be 35.2%,
with a 62.2% incidence and 56.6% intensity. The living standard dimension is the most
important contributor to overall poverty in the study areas. The results of the
Generalized Ordered Logit also revealed that health problems and conflict have a
significant and positive impact on individuals' multidimensional poverty. It was also
firmly revealed that conflict has a positive and substantial impact on multidimensional
poverty with an Average treatment effect of 12.4% on deprivation score of conflictaffected
individuals and an extremely powerful impact were pronounced on the living
standard dimensions. The policies of decreasing poverty should then pay attention to
living standard dimensions since this dimension is severely affected by conflict. |
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