Humboldt-Universität zu Berlin - Quarterly Journal of International Agriculture

Quarterly Journal of International Agriculture No. 2/07

Indicator based poverty assessment for rural Central Sulawesi

Xenia van Edig and Stefan Schwarze
University of Goettingen, Germany

Manfred Zeller
University of Hohenheim, Germany


Poverty reduction is one of the challenges of international development cooperation and necessitates the development of instruments which ease the identification of the poor as a target group.

This study aims to identify sets of indicators for poverty prediction in Central Sulawesi, Indonesia, in order to facilitate the development of low-cost, time-saving and easy-to-implement poverty assessment tools.

In the analysis two models with different initial sets of indicators and different types of regressions are tested. In the first model (Model 1), all variables derived from the composite questionnaire can be included in the model. In the second model (Model 2), only variables which are ranked as easy to verify are included. Ordinary least square regression as well as quantile regression are used. The econometric analysis shows that the regression analysis presented in this study offers good possibilities to find suitable indicators for poverty prediction in Central Sulawesi. When both models are compared in terms of their accuracy performance, a trade-off between accuracy and practicability is found.

Keywords: poverty assessment, poverty indicators, Indonesia, Central Sulawesi

JEL: I32, R15

Vol. 46 (2007), No. 2: 145-158