Description

This book is a study about rural poverty in the remote rural area of Kyrgyzstan. It analyses the linkage of poverty with the limits of production frontier efficiency of the rural households in the selected area. A field survey of the cross-section random sample collects primary information about 297 rural households. This allows to measure rural poverty and frontier production efficiency of a sample, using Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA) methods. The empirical results demonstrate statistical significance of the poverty-efficiency linkage in the case of simple and multivariate linear regression. The endogeneity problem is resolved with the proposed instrumental variables, not correlating with the wealth of the household, but affecting the technical efficiency.

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