Relationship between financial transfers and multidimensional poverty during the Covid-19 pandemic in Burkina Faso

Abstract

Financial transfers received by households during the pandemic crisis are perceived as altruistic behavior within the population. The aim of this article is to analyze the relationship between financial transfers and multidimensional poverty during the Covid-19 pandemic in Burkina Faso. The multidimensional poverty index (MPI) was constructed following Alkire and Foster. A linear regression model was used to analyze data collected on 423 households which have been selected in the two main cities impacted by the pandemic. The results show on the one hand that family financial transfers reduce multidimensional poverty deprivation scores. Government financial transfers, on the other hand, have no significant effect on multidimensional poverty deprivation scores. The results suggest that decision makers should step up social transfer policies for poor households during crises such as Covid-19.