Pathways out of poverty during an economic crisis: An empirical assessment of rural Indonesia
Abstract
Most 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 Info
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Paper provided by University of Goettingen, Department of Economics in its series Departmental Discussion Papers with number 131.
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Length: 38
Date of creation: 21 Mar 2007
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Handle: RePEc:got:vwldps:131
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Related research
Keywords: 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 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)
References
References listed on IDEASPlease 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.:
- Datt, Gaurav & Ravallion, Martin, 1998.
"Farm productivity and rural poverty in India,"
FCND discussion papers
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- Gaurav Datt & Martin Ravallion, 1998. "Farm productivity and rural poverty in India," The Journal of Development Studies, Taylor and Francis Journals, vol. 34(4), pages 62-85.
- Ravallion, Martin, 2004. "Pro-poor growth : A primer," Policy Research Working Paper Series 3242, The World Bank.
- Nomaan Majid, 2004. "Reaching Millennium Goals: How well does agricultural productivity growth reduce poverty?," Employment strategy papers 2004-12, International Labour Office.
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"Sri Lanka's Rural Non-Farm Economy: Removing Constraints to Pro-Poor Growth,"
World Development,
Elsevier, vol. 35(12), pages 2056-2078, December.
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- 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).
- 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).
- Ravallion, Martin & Huppi, Monika, 1991. "Measuring Changes in Poverty: A Methodological Case Study of Indonesia during an Adjustment Period," World Bank Economic Review, Oxford University Press, 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.
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Renate Ohr, . "European Monetary Union at Ten: Had the German Maastricht Critics Been Wrong?," Departmental Discussion Papers 141, University of Goettingen, Department of Economics.
- Corinna Ahlfeld, . "The scapegoat of heterogeneity - How fragmentation influences political decisionmaking," Departmental Discussion Papers 143, University of Goettingen, Department of Economics.
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