SPATIAL AGGLOMERATION EFFECT OF MULTIDIMENSIONAL POVERTY IN MALAWI

Abstract

High and persistent levels of multidimensional poverty pose the most significant challenge in Malawi. As a result, finding effective methods to eradicate poverty in all its forms remains a significant policy concern. Spatial theories of poverty suggest that the persistence of high levels of moneymetric poverty stems from spatial dependence and its spillover effects. In other words, the level of moneymetric poverty in a specific area is influenced by the level of poverty in neighbouring areas. Moreover, other socio-economic factors in a particular area also affect the level poverty in neighbouring areas. However, the previous studies never evaluated the situation in the case of multidimensional poverty aka nonmentary poverty The study aims to determine whether the level of multidimensional poverty in a specific area is affected by the level of multidimensional poverty in its neighbouring areas in Malawi. Additionally, the study seeks to analyse the effect of education levels in a particular area on the level of multidimensional poverty in neighbouring areas. By utilizing data from Malawi's fifth Integrated Household Survey (IHS V) in 2019, the study employs the Spatial Lag (SAR) model to examine the spatial spillover effects of multidimensional poverty in the country. The results show that multidimensional poverty in the country exhibits spatial dependence, signifying that multidimensional poverty in one area is influenced by multidimensional poverty in neighbouring areas. Furthermore, the findings also show that an increase in education levels in a particular area reduces multidimensional poverty of neighbouring areas. These findings imply that a multidimensional poverty reduction in Malawi can be achieved by targeting anti-poverty programs in areas that are highly dependent or hotspots. Specifically, by investing more in education.