Asset Growth, Asset Distribution and Changes in Multidimensional Poverty in Cameroon

Abstract

This study investigated changes in multidimensional poverty and  accounted for the effects of asset growth and redistribution in Cameroon over the period 1996 to 2001. The study applied the fuzzy set theoretical framework to generate an asset index, and employed the Shapley-value decomposition technique to obtain the sources of variations in the FGT class of multidimensional poverty. The results showed a significant  increase in multidimensional poverty over the period 1996 to 2001.  Variations in multidimensional poverty were attributable more to growth in asset endowments than to their redistribution. The indication was that  growth in household assets was observed to be essential for long-term  poverty reduction but it will be much less effective if such growth took place mainly among the non-poor. Thus, an optimal mix of policies that would encourage asset acquisition, as well as its spatial distribution would be  more effective in terms of poverty reduction.

Keywords: Growth, redistribution, fuzzy set theory, Shapley-value decomposition, Cameroon