n Journal of Emerging Trends in Economics and Management Sciences - Cash transfers, local government's efficiency and poverty alleviation : the case of Davao region in the Philippines

Volume 6, Issue 7
  • ISSN : 2141-7024
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This paper aims to investigate the relationships between cash transfer programs, efficiency of program implementation and the change in poverty incidence rates. Using secondary data collected from different municipalities in Davao Region, Philippines, we found a positive and statistically significant correlation between the percentages of families enrolled in the program with the change in poverty incidence rate, especially if no quota is imposed in registering beneficiaries in the municipality. We found no evidence of significant relationship between size of the per capita cash transfers and the changes in poverty incidence rates. The efficiency of the local government units in the implementation of the program showed a positive and significant correlation with the changes in the rate of poverty incidence. This finding suggests that the involvement and commitment of LGUs to support the implementation of a nationally-funded poverty reduction program is an enabling mechanism for cash transfer programs to succeed with the end view of achieving a significant reduction in poverty and meeting the target for the Millennium Development Goal (MDG).

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