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Poverty and Agricultural Growth: Chile in the 1990s

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  • Lopez, Ramon E.
  • Anriquez, Gustavo

Abstract

This paper analyzes the roles of agriculture in reducing poverty. Following the methodology proposed by Lopez (2002), three channels by which agricultural growth reduces poverty are tested: (i) its effects on the real wage of unskilled workers (and/or its possible effect in reducing their unemployment); (ii) the direct impact of agricultural growth on the income of poor farmers; and, (iii) the effect on real food prices. The paper concludes that the pro-poor role of agricultural expansion is dramatic. Agricultural growth tends to improve all measures of poverty significantly with head count falling around 7.3% as a consequence of a 4.5% increase in agricultural output. An important result is that while the economy-wide effects taking place via food prices and especially the labour market are quantitatively important the direct income effects on farmers are almost negligible.

Suggested Citation

  • Lopez, Ramon E. & Anriquez, Gustavo, 2004. "Poverty and Agricultural Growth: Chile in the 1990s," eJADE: electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations (FAO), Agricultural and Development Economics Division (ESA), vol. 1(01), pages 1-19.
    • Handle: RePEc:ags:ejade1:12013
    DOI: 10.22004/ag.econ.12013
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    References listed on IDEAS

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    1. Diewert, W E, 1971. "An Application of the Shephard Duality Theorem: A Generalized Leontief Production Function," Journal of Political Economy, University of Chicago Press, vol. 79(3), pages 481-507, May-June.
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    4. Clements, Michael P. & Mizon, Grayham E., 1991. "Empirical analysis of macroeconomic time series : VAR and structural models," European Economic Review, Elsevier, vol. 35(4), pages 887-917, May.
    5. Verbeek, Marno & Nijman, Theo, 1992. "Can Cohort Data Be Treated as Genuine Panel Data?," Empirical Economics, Springer, vol. 17(1), pages 9-23.
    6. Dante Contreras, 2003. "Poverty and Inequality in a Rapid Growth Economy: Chile 1990-96," Journal of Development Studies, Taylor & Francis Journals, vol. 39(3), pages 181-200.
    7. Verbeek, M.J.C.M. & Nijman, T.E., 1992. "Can cohort data be treated as genuine panel data?," Other publications TiSEM d4eada8f-b91c-4fe7-a58c-7, Tilburg University, School of Economics and Management.
    8. Phillips, Peter C B & Ouliaris, S, 1990. "Asymptotic Properties of Residual Based Tests for Cointegration," Econometrica, Econometric Society, vol. 58(1), pages 165-193, January.
    9. Alejandra Mizala & Pilar Romaguera & Paulo Henríquez, 1999. "Female labor supply in Chile," Documentos de Trabajo 58, Centro de Economía Aplicada, Universidad de Chile.
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    2. David Glick & Nidhiya Menon, 2009. "Public Programs Pare Poverty: Evidence From Chile," Bulletin of Economic Research, Wiley Blackwell, vol. 61(3), pages 249-282, July.

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    More about this item

    Keywords

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    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

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