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Access to irrigation and the escape from poverty: Evidence from Northern Mali

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  • Dillon, Andrew

Abstract

"Significant changes in the agricultural sector in northern Mali suggest that irrigation has made a large contribution to welfare increases over the past eight years. Using difference-in-differences, propensity score matching, and matched difference in differences with a small panel, this study estimates the impact of access to irrigation on poverty, production, and nutrient intakes. The findings suggest that gains in agricultural production value do not transfer uniquely to household consumption. The paper tests two alternative hypotheses about the distribution of agricultural gains: (1) the gains in agricultural production induced by irrigation yield higher household savings, or (2) intra-village transfers from irrigators to non-irrigators contribute to informal social insurance. The paper provides evidence of both saving and sharing within villages as complimentary strategies for consuming gains in agricultural production. This finding suggests that estimating the effects of a program, relying solely on household consumption, may underestimate the welfare gains of irrigation investment by ignoring the household's savings and informal insurance network." from Author's Abstract

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 782.

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Date of creation: 2008
Date of revision:
Handle: RePEc:fpr:ifprid:782

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Keywords: Irrigation; Informal insurance; Development strategy;

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References

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  1. Alderman, Harold & Watkins, Susan Cotts & Kohler, Hans-Peter & Maluccio, John A. & Behrman, Jere R., 2000. "Attrition in longitudinal household survey data," FCND briefs 96, International Food Policy Research Institute (IFPRI).
  2. Rosenzweig, Mark R. & Binswanger, Hans P., 1989. "Wealth, Weather Risk and the Composition and Profitability of Agricultural Investments," Bulletins 7455, University of Minnesota, Economic Development Center.
  3. Fan, Shenggen & Chan-Kang, Connie, 2004. "Returns to investment in less-favored areas in developing countries: a synthesis of evidence and implications for Africa," Food Policy, Elsevier, vol. 29(4), pages 431-444, August.
  4. Ravallion, Martin & Chen, Shaohua, 2005. "Hidden impact? Household saving in response to a poor-area development project," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2183-2204, December.
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  6. Huang, Qiuqiong & Dawe, David & Rozelle, Scott & Huang, Jikun & Wang, Jinxia, 2005. "Irrigation, poverty and inequality in rural China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(2), June.
  7. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2002. "How Much Should We Trust Differences-in-Differences Estimates?," NBER Working Papers 8841, National Bureau of Economic Research, Inc.
  8. Hussain, Intizar & Hanjra, Munir, . "Irrigation and poverty alleviation: review of the empirical evidence," Papers published in Journals (Open Access) h034483, International Water Management Institute.
  9. Qiuqiong Huang & David Dawe & Scott Rozelle & Jikun Huang & Jinxia Wang, 2005. "Irrigation, poverty and inequality in rural China ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(2), pages 159-175, 06.
  10. Jalan, Jyotsna & Ravallion, Martin, 2003. "Estimating the Benefit Incidence of an Antipoverty Program by Propensity-Score Matching," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(1), pages 19-30, January.
  11. Daniel O. Gilligan & John Hoddinott, 2007. "Is There Persistence in the Impact of Emergency Food Aid? Evidence on Consumption, Food Security, and Assets in Rural Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 225-242.
  12. Udry, Christopher, 1996. "Gender, Agricultural Production, and the Theory of the Household," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 1010-46, October.
  13. Meyer, Jack, 1987. "Two-moment Decision Models and Expected Utility Maximization," American Economic Review, American Economic Association, vol. 77(3), pages 421-30, June.
  14. Juan Jose Diaz & Sudhanshu Handa, 2006. "An Assessment of Propensity Score Matching as a Nonexperimental Impact Estimator: Evidence from Mexico’s PROGRESA Program," Journal of Human Resources, University of Wisconsin Press, vol. 41(2).
  15. Michael Lipton & Saurabh Sinha & Rachel Blackman, 2002. "Reconnecting Agricultural Technology to Human Development," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 3(1), pages 123-152.
  16. von Braun, Joachim & Puetz, Detlev & Webb, Patrick, 1989. "Irrigation technology and commercialization of rice in the Gambia: effects on income and nutrition," Research reports 75, International Food Policy Research Institute (IFPRI).
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Cited by:
  1. Dillon, Andrew, 2010. "Do differences in the scale of irrigation projects generate different impacts on poverty and production?," IFPRI discussion papers 1022, International Food Policy Research Institute (IFPRI).
  2. Burney, Jennifer A. & Naylor, Rosamond L., 2012. "Smallholder Irrigation as a Poverty Alleviation Tool in Sub-Saharan Africa," World Development, Elsevier, vol. 40(1), pages 110-123.

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