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Why have some Indian states performed better than others at reducing rural poverty?

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  • Datt, Gaurav
  • Ravallion, Martin

Abstract

Rural poverty rankings of Indian states in 1990 were very different from 1960. This unevenness in progress allows us to study the causes of poverty in a developing rural economy. We model the evolution of various poverty measures, using pooled state-level data for the period 1957-91. Differences in trend rates of poverty reduction are attributed to differing growth rates of farm yield per acre, and differing initial conditions; states starting with better infrastructure and human resources saw significantly higher long-term rates of poverty reduction. Deviations from the trend are attributed to inflation (which hurt the poor in the short term) and shocks to farm and nonfarm output.

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series FCND discussion papers with number 26.

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Date of creation: 1997
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Handle: RePEc:fpr:fcnddp:26

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Keywords: Rural poor India. ; Poverty; Rural India. ;

References

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  1. Lipton, Michael & Ravallion, Martin, 1995. "Poverty and policy," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 41, pages 2551-2657 Elsevier.
  2. Sargan, J D, 1980. "Some Tests of Dynamic Specification for a Single Equation," Econometrica, Econometric Society, vol. 48(4), pages 879-97, May.
  3. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  4. Bell, Clive & Rich, Robert, 1994. "Rural Poverty and Aggregate Agricultural Performance in Post-independence India," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 56(2), pages 111-33, May.
  5. Ravallion, Martin & Datt, Gaurav, 1995. "Growth and poverty in rural India," Policy Research Working Paper Series 1405, The World Bank.
  6. Hammond, Peter J & Rodriguez-Clare, Andres, 1993. " On Endogenizing Long-Run Growth," Scandinavian Journal of Economics, Wiley Blackwell, vol. 95(4), pages 391-425, December.
  7. Datt, Gaurav & Ravallion, Martin, 1990. "Regional disparities, targeting, and poverty in India," Policy Research Working Paper Series 375, The World Bank.
  8. Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," World Bank Economic Review, World Bank Group, vol. 10(1), pages 1-25, January.
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Citations

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Cited by:
  1. Fan, Shenggen & Hazell, P. B. R., 1999. "Are returns to public investment lower in less-favored rural areas?: an empirical analysis of India," EPTD discussion papers 43, International Food Policy Research Institute (IFPRI).
  2. Fan, Shenggen & Jitsuchon, Somchai & Methakunnavut, Nuntaporn, 2004. "The importance of public investment for reducing rural poverty in middle-income countries," DSGD discussion papers 7, International Food Policy Research Institute (IFPRI).
  3. Fan, Shenggen & Hazell, P. B. R., 1997. "Should India invest more in less-favored areas?:," EPTD discussion papers 25, International Food Policy Research Institute (IFPRI).
  4. World Bank, 2003. "India : Sustaining Reform, Reducing Poverty," World Bank Other Operational Studies 14617, The World Bank.
  5. Gutner, Tammi, 1999. "The political economy of Food subsidy reform in Egypt," FCND briefs 1, International Food Policy Research Institute (IFPRI).
  6. Fan, Shenggen & Hazell, P. B. R. & Thorat, Sukhadeo, 1999. "Linkages between government spending, growth, and poverty in rural India:," Research reports 110, International Food Policy Research Institute (IFPRI).
  7. Jin, Songqing & Yu, Winston & Jansen, Hans G.P. & Muraoka, Rie, 2012. "The impact of Irrigation on Agricultural Productivity: Evidence from India," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126868, International Association of Agricultural Economists.
  8. Datt, Gaurav, 1998. "Poverty in India and Indian states," FCND discussion papers 47, International Food Policy Research Institute (IFPRI).

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