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Vulnerability, shocks and persistence of poverty: estimates for semi-arid rural South India

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Author Info
Raghav Gaiha
Katsushi Imai

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Abstract

This paper focuses on the vulnerability of rural households to poverty when a negative crop shock occurs. The analysis is based on the ICRISAT panel survey of households in a semi-arid region in south India during 1975-84. Using a dynamic panel data model that takes into account effects of crop shocks, an assessment of vulnerability of different groups of households is carried out. What is somewhat surprising is that even sections of relatively affluent households are highly vulnerable to long spells of poverty when severe crop shocks occur. As such crop shocks are frequent in a harsh production environment, there must be a shift of emphasis in anti-poverty measures from meeting income shortfalls among the poor to enabling the vulnerable to protect themselves better against these shocks.

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Article provided by Taylor and Francis Journals in its journal Oxford Development Studies.

Volume (Year): 32 (2004)
Issue (Month): 2 ()
Pages: 261-281
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Handle: RePEc:taf:oxdevs:v:32:y:2004:i:2:p:261-281

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Neil McCulloch & Bob Baulch, 2000. "Simulating the Impact of Policy upon Chronic and Transitory Poverty in Rural Pakistan," Econometrics 0004003, EconWPA. [Downloadable!]
  2. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Blackwell Publishing, vol. 58(2), pages 277-97, April. [Downloadable!] (restricted)
  3. Alderman, Harold & Paxson, Christina H & DEC, 1992. "Do the poor insure? A synthesis of the literature on risk and consumption in developing countries," Policy Research Working Paper Series 1008, The World Bank. [Downloadable!]
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  4. Morduch, Jonathan, 1998. "Poverty, economic growth, and average exit time," Economics Letters, Elsevier, vol. 59(3), pages 385-390, June. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Romer Lovendal, Christian & Knowles, Marco, 2006. "Tomorrow's Hunger: A Framework for Analysing Vulnerability to Food Security," Working Papers RP2006/119, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  2. R. Radhakrishna & K. Hanumantha Rao & C. Ravi & B. Sambi Reddy, 2006. "Estimation and determinants of chronic poverty in India: An Alternative approach," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2006-007, Indira Gandhi Institute of Development Research, Mumbai, India. [Downloadable!]
  3. R Gaiha & K Imai & M A Nandhi, 2005. "Millennium Development Goal of Halving Poverty in Asia and the Pacific Region: Progress, Prospects and Priorities," The School of Economics Discussion Paper Series 0507, Economics, The University of Manchester. [Downloadable!]
  4. R Gaiha & K Imai, 2005. "A Review of the Employment Guarantee Scheme in India," The School of Economics Discussion Paper Series 0513, Economics, The University of Manchester. [Downloadable!]
  5. Pasquale Scaramozzino, 2006. "Measuring Vulnerability to Food Insecurity," Working Papers 06-12, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA). [Downloadable!]
  6. Raghbendra Jha & Raghav Gaiha & Anurag Sharma, 2006. "Mean Consumption, Poverty and Inequality in Rural India in the Sixtieth Round of the National Sample Survey," ASARC Working Papers 2006-11, Australian National University, Australia South Asia Research Centre. [Downloadable!]
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