Dynamics of Consumption Expenditure and Poverty Statistics in a Rural-Urban Context

Abstract

This paper analyzes consumption expenditure and poverty dynamics in rural and urban areas of India using panel data analysis. The objective is to identify factors related to escaping poverty and understand current poverty status. The study utilizes data from the India Human Development Survey (IHDS) for 2004-05 and 2011-12. The research methodology combines panel regression with fixed effects and binary logit regression. Findings reveal significant relationships between demographic characteristics, education, and consumption expenditure. Socioeconomic factors, like income sources and employment status, also influence Per Capita Consumption Expenditure. The study highlights the multidimensional nature of poverty, calling for targeted policies to address various dimensions. Policymakers can use these insights to foster inclusive development and reduce poverty in India. However, the binary logit regression has limitations, and future research could explore more nuanced models. Overall, this study informs evidence-based policymaking for poverty alleviation and inclusive development.