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Assets, Shocks, and Poverty Traps in Rural Mozambique

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  • Giesbert, Lena
  • Schindler, Kati

Abstract

This 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 Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 40 (2012)
Issue (Month): 8 ()
Pages: 1594-1609

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Handle: RePEc:eee:wdevel:v:40:y:2012:i:8:p:1594-1609

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

Related research

Keywords: assets; poverty trap; shocks; Africa; Mozambique;

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References

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Citations

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Cited by:
  1. Andy McKay & Emilie Perge, 2011. "How strong is the evidence for the existence of poverty traps? A multi country assessment," Working Paper Series 2511, Department of Economics, University of Sussex.
  2. Schicks, Jessica, 2014. "Over-Indebtedness in Microfinance – An Empirical Analysis of Related Factors on the Borrower Level," World Development, Elsevier, vol. 54(C), pages 301-324.
  3. McDougal, Topher & Caruso, Raul, 2013. "Wartime Violence and Post-Conflict Development Policy: The Case of Agricultural Concessions in Mozambique," NEPS Working Papers 1/2013, Network of European Peace Scientists.

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