Pathways Out of Poverty During an Economic Crisis: An Empirical Assessment of Rural Indonesia
AbstractMost poor people in developing countries still live in rural areas and are primarily engaged in low productivity farming activities. Thus pathways out of poverty are likely to be strongly connected to productivity increases in the rural economy, whether they are realised in farming, rural non-farm enterprises or via rural-urban migration. We use cross-sectional data from the Central Statistical Board (BPS) for 1993 and 2002, as well as a panel data set from the Indonesia Family Life Survey (IFLS) for 1993 and 2000, to show which pathways out of poverty were most successful over this period. Our findings suggest that increased engagement of farmers in rural non-farm enterprises is an important route out of rural poverty, but that most of the rural agricultural poor that exit poverty still do so while remaining rural and agricultural. Thus changes in agricultural prices, wages and productivity still play a critical role in moving people out of poverty.
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Bibliographic InfoPaper provided by Center for Global Development in its series Working Papers with number 115.
Length: 40 pages
Date of creation: Mar 2007
Date of revision:
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Web page: http://www.cgdev.org
Poverty dynamics; non-farm sector; micro-growth regression;
Other versions of this item:
- McCulloch, Neil & Weisbrod, Julian & Timmer, C. Peter, 2007. "Pathways out of poverty during an economic crisis : an empirical assessment of rural Indonesia," Policy Research Working Paper Series 4173, The World Bank.
- Neil McCulloch & Julian Weisbrod & C. Peter Timmer, 2007. "Pathways out of poverty during an economic crisis: An empirical assessment of rural Indonesia," Departmental Discussion Papers 131, University of Goettingen, Department of Economics.
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
This paper has been announced in the following NEP Reports:
- NEP-AGR-2007-04-21 (Agricultural Economics)
- NEP-ALL-2007-04-21 (All new papers)
- NEP-DEV-2007-04-21 (Development)
- NEP-SEA-2007-04-21 (South East Asia)
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