IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v38y2010i10p1362-1374.html
   My bibliography  Save this article

Reflections on the Role of Agriculture in Pro-Poor Growth

Author

Listed:
  • Valdés, Alberto
  • Foster, William

Abstract

Summary This paper assesses the importance of agriculture poverty reduction, largely through its impact on overall economic growth, drawing on evidence from Latin America and other developing regions. The econometric evidence strongly suggests that the sector contributes to growth more than its share of GDP, certainly in Latin America but also elsewhere. Cross-country studies show that, on average in the developing world, agriculture tends to have an impact on both national growth and poverty reduction that is greater than its simple share of national GDP. The results reinforce the argument against taxing agriculture relative to other sectors and that in assigning government expenditures to public goods one should take into account the historical relationship between agricultural growth and the subsequent non-agricultural growth. The paper also considers approaches to stimulate the rural economy.

Suggested Citation

  • Valdés, Alberto & Foster, William, 2010. "Reflections on the Role of Agriculture in Pro-Poor Growth," World Development, Elsevier, vol. 38(10), pages 1362-1374, October.
    • Handle: RePEc:eee:wdevel:v:38:y:2010:i:10:p:1362-1374
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305-750X(10)00102-6
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Frank Ellis & H Ade Freeman, 2004. "Rural Livelihoods and Poverty Reduction Strategies in Four African Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 40(4), pages 1-30.
    2. Dollar, David & Kraay, Aart, 2002. "Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
    3. Mr. Carlos A Leite & Mr. Charalambos G Tsangarides & Mr. Dhaneshwar Ghura, 2002. "Is Growth Enough? Macroeconomic Policy and Poverty Reduction," IMF Working Papers 2002/118, International Monetary Fund.
    4. Ravallion, Martin, 2002. "Externalities in rural development - evidence for China," Policy Research Working Paper Series 2879, The World Bank.
    5. Ravallion, Martin, 2001. "Growth, Inequality and Poverty: Looking Beyond Averages," World Development, Elsevier, vol. 29(11), pages 1803-1815, November.
    6. Raimundo Soto & Arístides Torche, 2004. "Spatial Inequality, Migration and Economic Growth in Chile," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 41(124), pages 401-424.
    7. Foster, Andrew D & Rosenzweig, Mark R, 2004. "Agricultural Productivity Growth, Rural Economic Diversity, and Economic Reforms: India, 1970-2000," Economic Development and Cultural Change, University of Chicago Press, vol. 52(3), pages 509-542, April.
    8. Ravallion, Martin, 2004. "Pro-poor growth : A primer," Policy Research Working Paper Series 3242, The World Bank.
    9. Peter Lanjouw, 2000. "Rural Non-Agricultural Employment and Poverty in Latin America: Evidence from Ecuador and El Salvador," Palgrave Macmillan Books, in: Ramón López & Alberto Valdés (ed.), Rural Poverty in Latin America, chapter 6, pages 99-119, Palgrave Macmillan.
    10. Gundlach, Erich & Navarro de Pablo, José & Weisert, Natascha, 2004. "Education is good for the poor: a note on Dollar and Kraay," Open Access Publications from Kiel Institute for the World Economy 3199, Kiel Institute for the World Economy (IfW Kiel).
    11. C. L. G. Bell & P. B. R. Hazell, 1980. "Measuring the Indirect Effects of an Agricultural Investment Project on Its Surrounding Region," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(1), pages 75-86.
    12. David de Ferranti & Guillermo E. Perry & William Foster & Daniel Lederman & Alberto Valdés, 2005. "Beyond the City: The Rural Contribution to Development," World Bank Publications - Books, The World Bank Group, number 7328, December.
    13. Arellano, Manuel, 2003. "Panel Data Econometrics," OUP Catalogue, Oxford University Press, number 9780199245291.
    14. Delgado, Christopher L. & Hopkins, Jane & Kelly , Valerie & Hazell, P. B. R. & McKenna, Anna A. & Gruhn, Peter & Hojjati, Behjat & Sil, Jayashree & Courbois, Claude, 1998. "Agricultural growth linkages in Sub-Saharan Africa:," Research reports 107, International Food Policy Research Institute (IFPRI).
    15. Lopez, Ramon, 2005. "Why governments should stopnon-social subsidies : measuring their consequences for rural Latin America," Policy Research Working Paper Series 3609, The World Bank.
    16. Timmer, C. Peter, 2002. "Agriculture and economic development," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 29, pages 1487-1546, Elsevier.
    17. Unknown, 1961. "The Role of Agriculture in Economic Development," International Journal of Agrarian Affairs, International Association of Agricultural Economists, vol. 3(2), pages 1-1, April.
    18. Raimundo Soto & Aristides Torche, 2004. "Spatial Inequality in Chile," Econometric Society 2004 Latin American Meetings 241, Econometric Society.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Klump, R. & Prüfer, P., 2006. "Prioritizing Policies for Pro-Poor Growth : Applying Bayesian Model Averaging to Vietnam," Other publications TiSEM dc14add6-f581-4eea-92dd-3, Tilburg University, School of Economics and Management.
    2. Mager, Gregor & Faße, Anja, 2021. "The Contribution of Smallholders´ Livelihood Activities on Income Inequality and Poverty: Case Study from Rural Tanzania," 2021 Conference, August 17-31, 2021, Virtual 315405, International Association of Agricultural Economists.
    3. Modrego, Félix & Berdegué, Julio A., 2015. "A Large-Scale Mapping of Territorial Development Dynamics in Latin America," World Development, Elsevier, vol. 73(C), pages 11-31.
    4. Bonilla, Eugenio Diaz, 2008. "Global macroeconomic developments and poverty:," IFPRI discussion papers 766, International Food Policy Research Institute (IFPRI).
    5. Neil McCulloch & C. Peter Timmer & Julian Weisbrod, 2007. "Pathways Out of Poverty During an Economic Crisis: An Empirical Assessment of Rural Indonesia," Working Papers 115, Center for Global Development.
    6. Klump, Rainer & Prüfer, Patricia, 2005. "How to prioritise policies for poverty reduction: Applying Bayesian Model Averaging to Vietnam," Proceedings of the German Development Economics Conference, Kiel 2005 27, Verein für Socialpolitik, Research Committee Development Economics.
    7. Rolf Maier, 2005. "Trade Policy and Pro-Poor Growth," International Trade 0504007, University Library of Munich, Germany.
    8. Bezemer, Dirk & Headey, Derek, 2008. "Agriculture, Development, and Urban Bias," World Development, Elsevier, vol. 36(8), pages 1342-1364, August.
    9. Bravo-Ortega, Claudio & Lederman, Daniel, 2005. "Agriculture and national welfare around the world: causality and international heterogeneity since 1960," Policy Research Working Paper Series 3499, The World Bank.
    10. Michael Grimm & Isabel Günther, 2007. "Growth and Poverty in Burkina Faso: A Reassessment of the Paradox," Journal of African Economies, Centre for the Study of African Economies, vol. 16(1), pages 70-101, January.
    11. Ugo Gentilini & Patrick Webb, 2005. "How Are We Doing on Poverty and Hunger Reduction?: A New Measure of Country-Level Progress," Working Papers in Food Policy and Nutrition 31, Friedman School of Nutrition Science and Policy.
    12. Laurence Roope, 2015. "Critical percentiles for equalizing growth," CSAE Working Paper Series 2015-16, Centre for the Study of African Economies, University of Oxford.
    13. Bui, Tuan & Nguyen, Cuong & Pham, Phuong, 2015. "Poverty among ethnic minorities: transition process, inequality and economic growth," MPRA Paper 68924, University Library of Munich, Germany.
    14. L. ALAN WINTERS & NEIL McCULLOCH & ANDREW McKAY, 2015. "Trade Liberalization and Poverty: The Evidence So Far," World Scientific Book Chapters, in: Non-Tariff Barriers, Regionalism and Poverty Essays in Applied International Trade Analysis, chapter 14, pages 271-314, World Scientific Publishing Co. Pte. Ltd..
    15. Timmer, Peter & Weisbrod, Julian & McCulloch, Neil, 2006. "The Pathways out of Poverty in Rural Indonesia: an empirical assessment," Proceedings of the German Development Economics Conference, Berlin 2006 29, Verein für Socialpolitik, Research Committee Development Economics.
    16. Luc Christiaensen & Lionel Demery & Stefano Paternostro, 2003. "Reforms, Remoteness and Risk in Africa: Understanding Inequality and Poverty during the 1990s," WIDER Working Paper Series DP2003-70, World Institute for Development Economic Research (UNU-WIDER).
    17. Ansgar Belke & Andreas Wernet, 2015. "Poverty Reduction through Growth and Redistribution Policies—a Panel Analysis for 59 Developing Countries," Review of Development Economics, Wiley Blackwell, vol. 19(1), pages 143-162, February.
    18. Nobuhiko Fuwa & Arsenio M. Balisacan & Fabrizio Bresciani, 2015. "In Search of a Strategy for Making Growth More Pro-Poor in the Philippines," Asian Economic Papers, MIT Press, vol. 14(1), pages 202-226, Winter/Sp.
    19. Awaworyi Churchill, Sefa & Smyth, Russell, 2017. "Ethnic Diversity and Poverty," World Development, Elsevier, vol. 95(C), pages 285-302.
    20. Mariapia MENDOLA, 2005. "Agricultural technology and poverty reduction: a micro-level analysis of causal effects," Departmental Working Papers 2005-14, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:38:y:2010:i:10:p:1362-1374. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.