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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Goettingen, Department of Economics in its series Departmental Discussion Papers with number 131.
Date of creation: 21 Mar 2007
Date of revision:
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 & C. Peter Timmer & Julian Weisbrod, 2007. "Pathways Out of Poverty During an Economic Crisis: An Empirical Assessment of Rural Indonesia," Working Papers 115, Center for Global Development.
- 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-2007-03-24 (Agricultural Economics)
- NEP-ALL-2007-03-24 (All new papers)
- NEP-DEV-2007-03-24 (Development)
- NEP-SEA-2007-03-24 (South East Asia)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Deininger, Klaus & Jin, Songqing & Sur, Mona, 2007.
"Sri Lanka's Rural Non-Farm Economy: Removing Constraints to Pro-Poor Growth,"
Elsevier, vol. 35(12), pages 2056-2078, December.
- Jin, Songqing & Deininger, Klaus W. & Sur, Mona, 2005. "Sri Lanka's Rural Non-farm Economy: Removing Constraints to Pro-poor Growth," 2005 Annual meeting, July 24-27, Providence, RI 19280, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Richard Tiffin & Xavier Irz, 2006. "Is agriculture the engine of growth?," Agricultural Economics, International Association of Agricultural Economists, vol. 35(1), pages 79-89, 07.
- Ravallion, Martin & Huppi, Monika, 1991. "Measuring Changes in Poverty: A Methodological Case Study of Indonesia during an Adjustment Period," World Bank Economic Review, World Bank Group, vol. 5(1), pages 57-82, January.
- Lanjouw, Jean O. & Lanjouw, Peter, 2001. "The rural non-farm sector: issues and evidence from developing countries," Agricultural Economics, Blackwell, vol. 26(1), pages 1-23, October.
- Gaurav Datt & Martin Ravallion, 1998.
"Farm productivity and rural poverty in India,"
Journal of Development Studies,
Taylor & Francis Journals, vol. 34(4), pages 62-85.
- Ravallion, Martin & Datt, Gaurav, 2002. "Why has economic growth been more pro-poor in some states of India than others?," Journal of Development Economics, Elsevier, vol. 68(2), pages 381-400, August.
- Delgado, Christopher L. & Hopkins, Jane & Kelly , Valerie & Hazell, P. B. R. & McKenna, Anna A. & Gruhn, Peter & Hojjati, Behjat & Sil, Jayashree & Courbois, Claude, 1998. "Agricultural growth linkages in Sub-Saharan Africa:," Research reports 107, International Food Policy Research Institute (IFPRI).
- Hazell, P. B. R. & Roell, Ailsa, 1983. "Rural growth linkages: household expenditure patterns in Malaysia and Nigeria," Research reports 41, International Food Policy Research Institute (IFPRI).
- Haggblade, Steven & Hazell, P. B. R. & Reardon, Thomas, 2002. "Strategies for stimulating poverty-alleviating growth in the rural nonfarm economy in developing countries:," EPTD discussion papers 92, International Food Policy Research Institute (IFPRI).
- Ravallion, Martin, 2004. "Pro-poor growth : A primer," Policy Research Working Paper Series 3242, The World Bank.
- Corinna Ahlfeld, 2009. "The scapegoat of heterogeneity - How fragmentation influences political decisionmaking," Departmental Discussion Papers 143, University of Goettingen, Department of Economics.
- Luc Christiaensen & Joachim Weerdt & Yasuyuki Todo, 2013.
"Urbanization and poverty reduction: the role of rural diversification and secondary towns,"
International Association of Agricultural Economists, vol. 44(4-5), pages 435-447, 07.
- Christiaensen, Luc & De Weerdt, Joachim & Todo, Yasuyuki, 2013. "Urbanization and poverty reduction -- the role of rural diversification and secondary towns," Policy Research Working Paper Series 6422, The World Bank.
- Shahidur R. Khandker & Hussain A. Samad & Rubaba Ali, 2013.
"Does Access to Finance Matter in Microenterprise Growth? Evidence from Bangladesh,"
15, Institute of Microfinance (InM).
- Khandker, Shahidur & Samad, Hussain & Ali, Rubaba, 2013. "Does Access to Finance Matter in Microenterprise Growth? Evidence from Bangladesh," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149028, Agricultural and Applied Economics Association.
- Khandker, Shahidur R. & Samad, Hussain A. & Ali, Rubaba, 2013. "Does access to finance matter in microenterprise growth ? evidence from Bangladesh," Policy Research Working Paper Series 6333, The World Bank.
- Renate Ohr, 2009. "European Monetary Union at Ten: Had the German Maastricht Critics Been Wrong?," Departmental Discussion Papers 141, University of Goettingen, Department of Economics.
- Christiaensen, Luc & Todo, Yasuyuki, 2013.
"Poverty reduction during the rural-urban transformation : the role of the missing middle,"
Policy Research Working Paper Series
6445, The World Bank.
- Christiaensen, Luc J.M. & Todo, Yasuyuki, 2009. "Poverty Reduction during the Rural-Urban Transformation - The Role of the Missing Middle," 2009 Conference, August 16-22, 2009, Beijing, China 51467, International Association of Agricultural Economists.
- McCarthy, John F. & Gillespie, Piers & Zen, Zahari, 2012. "Swimming Upstream: Local Indonesian Production Networks in “Globalized” Palm Oil Production," World Development, Elsevier, vol. 40(3), pages 555-569.
- Andy Sumner & Peter Edward, 2013. "From Low Income, High Poverty to High-Income, No Poverty? An Optimistic View of the Long-Run Evolution of Poverty in Indonesia By International Poverty Lines, 1984–2030," Working Papers in Economics and Development Studies (WoPEDS) 201310, Department of Economics, Padjadjaran University, revised Jun 2013.
- World Bank, 2011. "Tackling Poverty in Northern Ghana," World Bank Other Operational Studies 2755, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ben Schroeter).
If references are entirely missing, you can add them using this form.