Analysing Chronic Poverty in Rural Cambodia: Evidence from Panel Data
This paper uses four years of panel data on 793 households collected during 2001–11 to measure chronic poverty in rural Cambodia and to identify its key determinants. A household wealth index—a proxy for long-term welfare—constructed by polychoric principal component analysis is used as welfare indicator. Both ordered logistic and multinomial logistic regression models are adopted to identify the causes of chronic and transient poverty by focusing particularly on five explanatory variables: agricultural land and livestock, demography, human capital, social capital and natural resources.