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The (Evolving) Role of Agriculture in Poverty Reduction: An Empirical Perspective

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  • Christiaensen,Luc
  • Demery,Lionel
  • Kuhl, Jesper

Abstract

The role of agriculture in development remains much debated. This paper takes an empirical perspective and focuses on poverty, as opposed to growth alone. The contribution of a sector to poverty reduction is shown to depend on its own growth performance, its indirect impact on growth in other sectors, the extent to which poor people participate in the sector, and the size of the sector in the overall economy. Bringing together these different effects using cross-country econometric evidence indicates that agriculture is significantly more effective than nonagriculture in reducing poverty among the poorest of the poor (as reflected in the $1-day squared poverty gap). It is also up to 3.2 times better at reducing $1-day headcount poverty in low-income and resource-rich countries (including those in sub-Saharan Africa), at least when societies are not fundamentally unequal. However, when it comes to the better-off poor (reflected in the $2-day measure), non-agriculture has the edge. These results are driven by the much larger participation of poorer households in growth from agriculture and the lower poverty-reducing effect of non-agriculture in the presence of extractive industries.

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Bibliographic Info

Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Papers with number UNU-WIDER Working Paper WP2010/36.

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Length: 39 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:unu:wpaper:wp2010-36

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Keywords: agriculture; economic growth; poverty; sub-Saharan Africa;

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Citations

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Cited by:
  1. Arias-Vazquez , Francisco Javier & Lee, Jean N. & Newhouse, David, 2012. "The role of sectoral growth patterns in labor market development," Policy Research Working Paper Series 6250, The World Bank.
  2. Christiaensen, Luc & Pan,Lei & Wang, Sangui, 2010. "Drivers of Poverty Reduction in Lagging Regions: Evidence from Rural Western China," Working Papers UNU-WIDER Working Paper W, World Institute for Development Economic Research (UNU-WIDER).
  3. Maystadt, Jean-Francois, 2011. "Poverty reduction in a refugee-hosting economy: A natural experiment," IFPRI discussion papers 1132, International Food Policy Research Institute (IFPRI).
  4. Nicolas Depetris Chauvin & Francis Mulangu & Guido Porto, 2012. "Food Production and Consumption Trends in Sub-Saharan Africa: Prospects for the Transformation of the Agricultural Sector," Working Papers 2012-011, United Nations Development Programme, Regional Bureau for Africa (UNDP/RBA).
  5. Pedro Conceição & Sebastian Levine, 2011. "The African Moment: On the Brink of a Development Breakthrough," Working Papers 2011-001, United Nations Development Programme, Regional Bureau for Africa (UNDP/RBA).
  6. Ecker, Olivier & Breisinger, Clemens, 2012. "The food security system: A new conceptual framework," IFPRI discussion papers 1166, International Food Policy Research Institute (IFPRI).
  7. Lefèvre, Mélanie & Tharakan, Joe, 2011. "Intermediaries, transport costs and interlinked transactions," CEPR Discussion Papers 8615, C.E.P.R. Discussion Papers.
  8. Nassul S. Kabunga & Thomas Dubois & Matin Qaim, 2011. "Impact of Tissue Culture Banana Technology on Farm Household Income and Food Security in Kenya," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 89, Courant Research Centre PEG.
  9. Douillet, Mathilde, 2012. "Trade policy reforms in the new agricultural context: Is regional integration a priority for Sub-Saharan African countries agricultural-led industrialization? Insights from a global computable general," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126546, International Association of Agricultural Economists.
  10. Headey, Derek D., 2013. "The impact of the global food crisis on self-assessed food security," Policy Research Working Paper Series 6329, The World Bank.
  11. Otsuka, Keijiro, 2012. "Presidential Address at 27th International Conference of Agricultural Economists, Foz do Iguaçu, Brazil : Food Insecurity, Income Inequality, and the Changing Comparative Advantage in World Agricultu," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 127068, International Association of Agricultural Economists.

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