Economic Determinants of Poverty in Zimbabwe

Abstract: The study investigates the empirical determinants of poverty in Zimbabwe using cross section data for 2005. The study focuses on consumption function since poverty is defined as lack of basic needs of which food is included. A regression model was estimated based on this data, with per capita consumption as the dependent variable and a set of economic and demographic variables as explanatory variables. Variables that are significant and positively correlated with per capita consumption thus negatively correlated to poverty are: age squared, gender (male), widow, maximum level of education, attaining primary education, employment in any sector except working in the informal sector, migration status, engaged in secondary business, number of sources of income, credit availability and land area cultivated. Variables significant and negatively correlated with per capita consumption and positively correlated to poverty are: age and household size. Employment in the informal sector, days missed due to illness, and land ownership were some of the insignificant variables