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The sectoral structure of poverty during an adjustment period: Evidence for Indonesia in the mid-1980s

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  • Huppi, Monika
  • Ravallion, Martin

Abstract

The authors examine the structure of poverty in Indonesia by sector of employment, and how it changed during the adjustment period, 1984 to 1987. They find that, while aggregate poverty decreased during the period, the gains to the poor were quite uneven across regions and sectors. Gains to the rural sector in key regions were quantitatively important to Indonesia's success in alleviating poverty, they found. Most poverty exists -- and most gains in alleviating poverty were made -- in the rural farming sector. These gains were associated with crop diversification and continued growth in off-farm employment. The government's adjustment program favored rural areas and were crucial to Indonesia's evident success at maintaining momentum in alleviating poverty. However, one should not underrate the favorable conditions in Indonesia when adjustment started.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 19 (1991)
Issue (Month): 12 (December)
Pages: 1653-1678

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Handle: RePEc:eee:wdevel:v:19:y:1991:i:12:p:1653-1678

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References

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  1. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  2. Ahmed, Sadiq & Chhibber, Ajay, 1989. "How can Indonesia maintain creditworthiness and noninflationary growth ?," Policy Research Working Paper Series 291, The World Bank.
  3. Ravallion, Martin & van de Walle, Dominique, 1991. "Urban-rural cost-of-living differentials in a developing economy," Journal of Urban Economics, Elsevier, vol. 29(1), pages 113-127, January.
  4. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
  5. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-64, July.
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Cited by:
  1. Friedman, Jed, 2003. "How Responsive is Poverty to Growth? A Regional Analysis of Poverty, Inequality, and Growth in Indonesia, 1984-99," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  2. Thorbecke, Erik & Jung, Hong-Sang, 1996. "A multiplier decomposition method to analyze poverty alleviation," Journal of Development Economics, Elsevier, vol. 48(2), pages 279-300, March.
  3. Kanbur, Ravi, 2000. "Income distribution and development," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 13, pages 791-841 Elsevier.
  4. Naylor, Rosamond L. & Falcon, Walter P., 1995. "Is the locus of poverty changing?," Food Policy, Elsevier, vol. 20(6), pages 501-518, December.
  5. Haddad, Lawrence & Brown, Lynn R. & Richter, Andrea & Smith, Lisa, 1995. "The gender dimensions of economic adjustment policies: Potential interactions and evidence to date," World Development, Elsevier, vol. 23(6), pages 881-896, June.
  6. Armida Alisjahbana & Chris Manning, 2006. "Labour market dimensions of poverty in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 42(2), pages 235-261.
  7. Benfica, Rui M.S., 2007. "Income Poverty Effects of Expansion and Policies in Cash Cropping Economies in Rural Mozambique: An Economy-wide Approach," Food Security Collaborative Working Papers 56070, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  8. Stifel, David C. & Thorbecke, Erik, 2003. "A dual-dual CGE model of an archetype African economy: trade reform, migration and poverty," Journal of Policy Modeling, Elsevier, vol. 25(3), pages 207-235, April.
  9. Reardon, Thomas & Taylor, J. Edward, 1996. "Agroclimatic shock, income inequality, and poverty: Evidence from Burkina Faso," World Development, Elsevier, vol. 24(5), pages 901-914, May.
  10. Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2007. "Electricity Reforms in Senegal: A Macro–Micro Analysis of the Effects on Poverty and Distribution," Cahiers de recherche 07-12, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.

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