RIEB, Kobe University

Rural and Urban Poverty Estimates for Developing Countries: Methodologies

This paper is to set out the backgrounds for the construction of new rural and urban poverty and inequality estimates using the World Bank Living Standard Measurement Survey (LSMS) data of developing countries with focus on methodological details as well as on their advantages or disadvantages. First, we have reviewed recent regional estimates based on the US$1.25 per day poverty line as well as those based on Multidimensional Poverty Index (MPI) for both rural and urban areas. It has been found that the level of poverty is much higher in rural areas than in urban areas across different regions regardless of the definitions of poverty. Second, we have summarised estimates of poverty and inequality for Tanzania and Uganda based on recent panel data constructed by LSMS.