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Assets, Shocks, and Poverty Traps in Rural Mozambique

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  • Lena Giesbert

    ()

  • Kati Schindler

    ()

Abstract

Using a micro-level approach to poverty traps, this paper explores welfare dynamics among households in post-war rural Mozambique. Conceptually, the paper builds on an asset-based approach to poverty and tests empirically, with household panel data, for the existence of a poverty trap. Findings indicate that there is little differentiation in productive asset endow-ments over time and that rural households gravitate towards a single equilibrium, which is at a surprisingly low level. The analysis shows that shocks and household coping behavior help to explain the observed poverty dynamics. The single low-level equilibrium points to an overall development trap in the rural farm-based economy. This is attributed to the long-term impact of the civil war, which has consolidated unfavorable economic conditions in ru-ral areas and limited new economic opportunities outside of the agricultural sector.

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Bibliographic Info

Paper provided by GIGA German Institute of Global and Area Studies in its series GIGA Working Paper Series with number 150.

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Length: 40
Date of creation: Nov 2010
Date of revision:
Handle: RePEc:gig:wpaper:150

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Keywords: poverty trap; shocks; asset-based approach; violent conflict; Mozambique;

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Citations

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Cited by:
  1. Goh, Amelia H. X., 2012. "A literature review of the gender-differentiated impacts of climate change on women's and men's assets and well-being in developing countries:," CAPRi working papers 106, International Food Policy Research Institute (IFPRI).
  2. McDougal, Topher & Caruso, Raul, 2013. "Wartime Violence and Post-Conflict Development Policy: The Case of Agricultural Concessions in Mozambique," NEPS Working Papers 1/2013, Network of European Peace Scientists.
  3. Jessica Schicks, 2012. "Over-Indebtedness in Microfinance – An Empirical Analysis of Related Factors on the Borrower Level," Working Papers CEB 12-017, ULB -- Universite Libre de Bruxelles.
  4. Andy McKay & Emilie Perge, 2011. "How strong is the evidence for the existence of poverty traps? A multi country assessment," Working Paper Series 2511, Department of Economics, University of Sussex.

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