11 research outputs found

    How much should we trust micro-data? A comparison of the socio-demographic profile of Malawian households using census, LSMS and DHS data

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    This paper assesses the empirical representativeness of micro-data by comparing the Malawi 2008 census to two representative household surveys – ‘the Living Standard Measurement Survey’ and the ‘Demographic and Health Survey’ – both implemented in Malawi in 2010. The comparison of descriptive statistics – demographics, asset ownership, and living conditions – shows considerable similarities despite statistically identifiable differences due to the large samples. Differences mainly occur when wording, scope, and pre-defined answer categories diverge across surveys. Multivariate analyses are considerably less representative due to loss of observations with composite indicators yielding higher comparability as individual ones. Household-level fixed-effect specifications produce more similar results, yet are not suited for policy conclusions. Comparability of micro-data should not be assumed but checked on a case-by-case basis. Still, micro-data constitute reliable grounds for factually informed conclusions if design and context are appropriately considered

    Does it Matter that we do not Agree on the Definition of Poverty? A Comparison of Four Approaches

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    While there is world-wide agreement on poverty reduction as an overriding goal of development policy, there is little agreement on the definition of poverty. Four approaches to the definition and measurement of poverty are reviewed in this paper: the monetary, capability, social exclusion and participatory approaches. The theoretical underpinnings of the various measures and problems of operationalizing them are pointed out. It is argued that each is a construction of reality, involving numerous judgements, which are often not transparent. The different methods have different implications for policy, and also, to the extent that they point to different people as being poor, for targeting. Empirical work in Peru and India shows that there is significant lack of overlap between the methods with, for example, nearly half the population identified as in poverty according to monetary poverty but not in capability poverty, and conversely. This confirms similar findings elsewhere. Hence, the definition of poverty does matter for poverty eradication strategies.

    Reinventing strategies for emerging markets: beyond the transnational model

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    With established markets becoming saturated, multinational corporations (MNCs) have turned increasingly to emerging markets (EMs) in the developing world. Such EM strategies have been targeted almost exclusively at the wealthy elite at the top of the economic pyramid. Recently, however, a number of MNCs have launched new initiatives that explore the untapped market potential at the base of the economic pyramid, the largest and fastest-growing segment of the world's population. Reaching the four billion people in these markets poses both tremendous opportunities and unique challenges to MNCs, as conventional wisdom about MNC global capabilities and subsidiary strategy in EMs may not be appropriate. How MNCs can successfully enter these low-income markets has not been effectively addressed in the literatures on global and EM strategies. An exploratory analysis, involving interviews with MNC managers, original case studies, and archival material, indicates that the transnational model of national responsiveness, global efficiency and worldwide learning may not be sufficient. Results suggest that the success of initiatives targeting low-income markets is enhanced by recognizing that Western-style patterns of economic development may not occur in these business environments. Business strategies that rely on leveraging the strengths of the existing market environment outperform those that focus on overcoming weaknesses. These strategies include developing relationships with non-traditional partners, co-inventing custom solutions, and building local capacity. Together, these successful strategies suggest the importance of MNCs developing a global capability in social embeddedness. Journal of International Business Studies (2004) 35, 350–370. doi:10.1057/palgrave.jibs.8400099
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