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Rural Poverty Determinants in the Remote Rural Areas of Kyrgyzstan

A Production Efficiency Impact on the Poverty Level of a Rural Household


Kanat Tilekeyev

This book is a study about rural poverty in the remote rural area of Kyrgyzstan. It analyses the linkage of poverty with the limits of production frontier efficiency of the rural households in the selected area. A field survey of the cross-section random sample collects primary information about 297 rural households. This allows to measure rural poverty and frontier production efficiency of a sample, using Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA) methods. The empirical results demonstrate statistical significance of the poverty-efficiency linkage in the case of simple and multivariate linear regression. The endogeneity problem is resolved with the proposed instrumental variables, not correlating with the wealth of the household, but affecting the technical efficiency.
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E TSLS First Stage Results


ETSLS First Stage Results

This appendix presents the results of the first stage of the two-stage least squares regression of the poverty-efficiency linkage. The final results of this model are presented in Table 6.9 on page 128. The table below shows the LS estimation coefficients for the land quality (LQ) and land distance(DL) variables as explanatory variables and the technical efficiency estimates as the dependant variable. A separate correlation is shown for each explanatory variable set, as well as for the whole set. The values for the those households, which do not have their own land or do not know the answer, are out of the first stage, in the purpose to prevent a perfect multicollinearity case. Thus, in each set of variables, estimations are implemented towards those households, which do not have their own land or do not know the answer. Explanatory variables (instruments) description is given on page 127. ← 223 | 224 →


Table E.1: First stage of Two-Stage Least Squares Estimation of SFA efficiency and Instrumental Variables

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