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Reflections on the Role of Agriculture in Pro-Poor Growth

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  • 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.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 38 (2010)
Issue (Month): 10 (October)
Pages: 1362-1374

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Handle: RePEc:eee:wdevel:v:38:y:2010:i:10:p:1362-1374

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Web page: http://www.elsevier.com/locate/worlddev

Related research

Keywords: agriculture; growth; poverty; linkages; Latin America;

References

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  1. 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 509-42, April.
  2. 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.
  3. Ravallion, Martin, 2002. "Externalities in rural development - evidence for China," Policy Research Working Paper Series 2879, The World Bank.
  4. Ravallion, Martin, 2001. "Growth, inequality, and poverty : looking beyond averages," Policy Research Working Paper Series 2558, The World Bank.
  5. Dollar, David & Kraay, Aart, 2001. "Growth is good for the poor," Policy Research Working Paper Series 2587, The World Bank.
  6. Arellano, Manuel, 2003. "Panel Data Econometrics," OUP Catalogue, Oxford University Press, number 9780199245291, September.
  7. 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.
  8. 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).
  9. 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.
  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).
  11. Ravallion, Martin, 2004. "Pro-poor growth : A primer," Policy Research Working Paper Series 3242, The World Bank.
  12. Carlos Leite & Charalambos G. Tsangarides & Dhaneshwar Ghura, 2002. "Is Growth Enough? Macroeconomic Policy and Poverty Reduction," IMF Working Papers 02/118, International Monetary Fund.
  13. 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.
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Citations

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Cited by:
  1. BΘnΘ, C. & Chijere Asafu, D.G. & Allison, E.H. & Snyder, K., 2012. "Design and implementation of fishery modules in integrated household surveys in developing countries," Working Papers, The WorldFish Center, number 39853.
  2. Wiebelt, Manfred & Pauw, Karl & Matovu, John Mary & Twimukye, Evarist & Benson, Todd, 2011. "Managing future oil revenue in Uganda for agricultural development and poverty reduction: A CGE analysis of challenges and options," IFPRI discussion papers 1122, International Food Policy Research Institute (IFPRI).
  3. Zezza, Alberto & Winters, Paul C. & Davis, Benjamin & Carletto, Calogero & Covarrubias, Katia & Quinones, Esteban & Stamoulis, Kostas G. & Di Giuseppe, Stefania, 2007. "Rural Household Access to Assets and Agrarian Institutions: A Cross Country Comparison," 106th Seminar, October 25-27, 2007, Montpellier, France 7925, European Association of Agricultural Economists.
  4. World Bank, 2013. "Pakistan : Finding the Path to Job-Enhancing Growth," World Bank Other Operational Studies 15979, The World Bank.
  5. Klasen, Stephan & Reimers, Malte, 2013. "Looking at Pro-Poor Growth from an Agricultural Perspective," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149745, Agricultural and Applied Economics Association.
  6. Prabhu Pingali, 2007. "Agricultural growth and economic development: a view through the globalization lens," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 1-12, December.
  7. Ministry of Agriculture (Liberia), 2007. "Comprehensive Assessment of the Agriculture Sector in Liberia : Volume 1, Synthesis Report," World Bank Other Operational Studies 7677, The World Bank.
  8. Pauw, Karl & Thurlow, James, 2011. "Agricultural growth, poverty, and nutrition in Tanzania," Food Policy, Elsevier, vol. 36(6), pages 795-804.

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