Department of Agricultural and Resource Economics

In this paper, our overall goal is to understand how effective access to infrastructure is in reducing poverty in PNG. To meet this goal, we examine poverty in PNG, and seek to show the relationship between poverty and access to infrastructure and then identify the determinants of poverty. In our analysis, we test whether or not access to infrastructure is a significant factor in a household's poverty status. Finally, we want to understand what policies will be effective in overcoming poverty in PNG. Our results show that poverty in PNG is primarily rural and is associated with those in communities with poor access to services, markets, and transportation. Our simulations illustrate that improving access to school leads to large declines in poverty. Increasing access to poverty for those that are currently most isolated would have a significant effect in decreasing the severity of poverty.