This paper uses household survey data to model the determinants of household
consumption and poverty in Fiji. A multivariate analysis is conducted to ascertain
those household characteristics that correlate with household welfare and poverty. The
ordinary least squares (OLS) estimation results suggest that higher levels of education,
supporting agricultural growth policies in rural areas and reallocation of labour to the
formal sector of the economy are likely to be effective in reducing poverty at the
household level. The robustness of the results is checked by estimating a probit model.
The probit estimates show the coefficients are robust to an alternative empirical
approach.