Following the economic and legal reforms of the early 1990s, the Government of Mexico has developed new agricultural support programs that promote productivity and facilitate the adjustment process, while not interfering with the market economy put into place by the reforms. In this paper, we use a panel survey for the the ejido sector for the years 1994 and 1997 to analyze the impact on poverty of two programs: PROCAMPO, a cash transfer per hectare of cultivated land, and ALIANZA, a matching grant program for investments in agriculture. Our evaluation method takes into account the endogeneity of placement. We find that participation in PROCAMPO significantly reduces the likelihood that a ejido household will be poor, but that ALIANZA has no significant impact on poverty. It is also shown that PROCAMPO may have a positive multiplier effect on household income.
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Article provided by Instituto de Economía. Pontificia Universidad Católica de Chile. in its journal Cuadernos de Economía.
Find related papers by JEL classification: H5 - Public Economics - - National Government Expenditures and Related Policies I3 - Health, Education, and Welfare - - Welfare and Poverty
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