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Covariate Shocks and Rural Poverty in Burkina Faso

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  • Sakurai, Takeshi
  • Savadogo, Kimseyinga
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    Abstract

    The civil war in Côte d’Ivoire has caused an increase in household size due to returnees and a decrease in remittance received in rural Burkina Faso. This paper, taking advantage of a rare dataset covering the covariate shocks caused by the Ivorian Crisis, examines empirically the impact of such shocks on households’ welfare in rural Burkina Faso. It is found that the number of working-age returnees increases household cropped area: one working-age returnees increase 0.64 ha of cropped area and that the decrease of remittance from Côte d’Ivoire increases non-agricultural income: 1 FCFA reduction of remittance increases 0.78 FCFA of non-agricultural income. In spite of those coping behaviors, this paper demonstrates that the households do not fully smooth consumption against the reduction of remittance form Côte d’Ivoire. The impact is much larger for the asset-poor households than the asset-rich household, as expected. Female human capital, on the other hand, is found to enhance household expenditure per capita. Two-stage regression with non-agricultural income variable confirms the role of non-agricultural income in the reduction of poverty.

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    Bibliographic Info

    Paper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51722.

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    Date of creation: Jun 2009
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    Handle: RePEc:ags:iaae09:51722

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    Related research

    Keywords: covariate shocks; poverty; remittance; Food Security and Poverty; International Development; Risk and Uncertainty; Q12;

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    References

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    1. Michael Grimm & Isabel Günther, 2007. "Growth and Poverty in Burkina Faso: A Reassessment of the Paradox," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 16(1), pages 70-101, January.
    2. Marcel Fafchamps & Chris Udry & Katherine Czukas, . "Drought and Saving in West Africa: Are Livestock a Buffer Stock?," Working Papers 97013, Stanford University, Department of Economics.
    3. Stefan Dercon, 2005. "Risk, Poverty and Vulnerability in Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 14(4), pages 483-488, December.
    4. Sarah Harrower & John Hoddinott, 2005. "Consumption Smoothing in the Zone Lacustre, Mali," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 14(4), pages 489-519, December.
    5. McKenzie, David J., 2003. "How do Households Cope with Aggregate Shocks? Evidence from the Mexican Peso Crisis," World Development, Elsevier, vol. 31(7), pages 1179-1199, July.
    6. Takasaki, Yoshito & Barham, Bradford L. & Coomes, Oliver T., 2004. "Risk coping strategies in tropical forests: floods, illnesses, and resource extraction," Environment and Development Economics, Cambridge University Press, vol. 9(02), pages 203-224, May.
    7. Reardon, Thomas & Matlon, Peter & Delgado, Christopher, 1988. "Coping with household-level food insecurity in drought-affected areas of Burkina Faso," World Development, Elsevier, vol. 16(9), pages 1065-1074, September.
    8. Takeshi Sakurai & Thomas Reardon, 1997. "Potential Demand for Drought Insurance in Burkina Faso and Its Determinants," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1193-1207.
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    Cited by:
    1. World Bank, 2013. "Burkina Faso : Perceived Shocks, Vulnerability, Food Insecurity, and Poverty," World Bank Other Operational Studies 15988, The World Bank.

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