Assessment of Multidimensional Poverty changes in Malawi: Evidence from 2010-2019 data

Abstract For many years, the international development community has placed a high priority on reducing poverty as a key policy objective. Nevertheless in Malawi, multidimensional poverty has remained alarmingly high exceeding 50% for the past ten years (2004–2016). While previous research on poverty in Malawi has focused on income-based measures, little is known about the changes in multidimensional poverty and their underlying factors. This study investigates multidimensional poverty in Malawi from 2010 to 2019 using the recent Malawi-specific Multidimensional Poverty Index (M-MPI) and nationally representative data from the Integrated Household Panel Survey. In terms of methods, the Alkire-Foster method is used to calculate the MPI. We use unconditional quantile regression model and the Oaxaca-Blinder decomposition to understand the drivers and dynamics of multidimensional poverty in Malawi. The findings 54moving from 70.4% in 2010 to 62.1% in 2019, with household income, the literacy and education level of the household head being among the main factors influencing this change. However, household size, experience of shocks, social protection programs, residence in rural areas, and marriage were identified as factors that increased MPI over time. Access to credit had an ambiguous impact on poverty changes. These findings can be useful for policymakers to design targeted and cost-effective interventions to reduce poverty and maximize economic growth in Malawi.