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Poverty and Agricultural Growth: Chile in the 1990s

Author

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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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    Cited by:

    1. is not listed on IDEAS
    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.

    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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