Assets, Shocks, and Poverty Traps in Rural Mozambique
AbstractThis paper explores welfare dynamics among households in rural Mozambique. Using household panel data, we test whether an asset-based poverty trap exists. Findings indicate that all rural households converge to one stable equilibrium in the medium term, which is close to the poverty line. This may indicate that households in rural Mozambique are collectively trapped in generalized underdevelopment. A drought and household coping strategies help to explain the observed poverty dynamics. Food-insecure households who have better access to income-generating opportunities and who can afford drawing on unproductive assets are able to sustain their productive asset base in the short term.
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Bibliographic InfoArticle provided by Elsevier in its journal World Development.
Volume (Year): 40 (2012)
Issue (Month): 8 ()
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Web page: http://www.elsevier.com/locate/worlddev
assets; poverty trap; shocks; Africa; Mozambique;
Other versions of this item:
- Lena Giesbert & Kati Schindler, 2010. "Assets, Shocks, and Poverty Traps in Rural Mozambique," GIGA Working Paper Series 150, GIGA German Institute of Global and Area Studies.
- Lena Giesbert & Kati Schindler, 2010. "Assets, Shocks, and Poverty Traps in Rural Mozambique," Discussion Papers of DIW Berlin 1073, DIW Berlin, German Institute for Economic Research.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
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