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Subnational Multidimensional Poverty Dynamics in Developing Countries: the cases of Ecuador and Uruguay

Abstract:

This paper studies deprivation dynamics at the subnational level, introducing a Local Multidimensional Poverty Index (LMPI), and focusing on multidimensional poverty in Ecuador and Uruguay between the last two available censuses, 1990–2010 and 1996–2011, respectively. As a first step, we construct the LMPI at the municipal level using microdata from both counties. Subsequently, we explore spatial and temporal dynamics through a set of tools such as the salter graph, Moran’s I, Moran scatterplot, and spatial transition matrix. The results indicate that compared to Ecuador, Uruguay was initially in a better position in terms of the LMPI. However, Ecuador achieved a generalized reduction of the LMPI during the period of analysis, reaching levels close to that of Uruguay. Nevertheless, spatial persistence in the LMPI is observed.