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

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  • Raghav Gaiha
  • Katsushi Imai

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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Bibliographic Info

Article provided by Taylor & 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

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  1. 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, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  2. Neil McCulloch & Bob Baulch, 2000. "Simulating the impact of policy upon chronic and transitory poverty in rural Pakistan," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 100-130.
  3. Neil McCulloch & Bob Baulch, 2000. "Simulating the Impact of Policy upon Chronic and Transitory Poverty in Rural Pakistan," Econometrics 0004003, EconWPA.
  4. World Bank, 2001. "Risk Management in South Asia : A Poverty Focused Approach," World Bank Other Operational Studies 15449, The World Bank.
  5. Alderman, H. & Paxson, C.H., 1992. "Do the Poor Insure? A Synthesis of the Literature on Risk and Consumption in Developing Countries," Papers 164, Princeton, Woodrow Wilson School - Development Studies.
  6. Morduch, Jonathan, 1998. "Poverty, economic growth, and average exit time," Economics Letters, Elsevier, vol. 59(3), pages 385-390, June.
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Citations

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Cited by:
  1. 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).
  2. 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.
  3. Romer Lovendal, Christian & Knowles, Marco, 2006. "Tomorrow's Hunger: A Framework for Analysing Vulnerability to Food Security," Working Paper Series RP2006/119, World Institute for Development Economic Research (UNU-WIDER).
  4. Raghbendra Jha, 2006. "Vulnerability and Natural Disasters in Fiji, Papua New Guinea, Vanuatu and the Kyrgyz Republic," Departmental Working Papers 2006-05, The Australian National University, Arndt-Corden Department of Economics.
  5. Raghav Gaiha & Katsushi Imai & Woojin Kang, 2007. "Vulnerability and poverty dynamics in Vietnam," The School of Economics Discussion Paper Series 0708, Economics, The University of Manchester.
  6. 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.
  7. 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, The Australian National University, Australia South Asia Research Centre.
  8. Manoj K. Pandey, 2009. "On Ageing, Health and Poverty in Rural India," ASARC Working Papers 2009-14, The Australian National University, Australia South Asia Research Centre.
  9. Md. Shafiul Azam & Katsushi S. Imai, 2009. "Vulnerability and Poverty in Bangladesh," ASARC Working Papers 2009-02, The Australian National University, Australia South Asia Research Centre.
  10. Md. Shafiul Azam & Katsushi S. Imai, 2012. "Measuring Households' Vulnerability to Idiosyncratic and Covariate Shocks – the case of Bangladesh," Discussion Paper Series DP2012-02, Research Institute for Economics & Business Administration, Kobe University.
  11. Gaiha, Raghav & Imai, Katsushi, 2008. "Measuring Vulnerability and Poverty: Estimates for Rural India," Working Paper Series RP2008/40, World Institute for Development Economic Research (UNU-WIDER).
  12. R Gaiha & K Imai, 2006. "Vulnerability and poverty in rural India-estimates for rural south India," The School of Economics Discussion Paper Series 0602, Economics, The University of Manchester.
  13. 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.
  14. Takeshima, Hiroyuki & Yamauchi, Futoshi, 2010. "Market and climatic risks and farmers' investment in productive assets under the Second Fadama Development Project in Nigeria:," IFPRI discussion papers 1033, International Food Policy Research Institute (IFPRI).
  15. Raghbendra Jha, 2006. "Vulnerability of Consumption Growth in Rural India," ASARC Working Papers 2006-04, The Australian National University, Australia South Asia Research Centre.

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