IDEAS home Printed from https://ideas.repec.org/a/bla/revinw/v58y2012i4p742-763.html
   My bibliography  Save this article

Poverty Reduction and Economic Structure: Comparative Path Analysis for Mozambique and Vietnam

Author

Listed:
  • Channing Arndt
  • Andres Garcia
  • Finn Tarp
  • James Thurlow

Abstract

While economic growth generally reduces income poverty, there are pronounced differences in the strength of this relationship across countries. Typical explanations for this variation include measurement errors in growth-poverty accounting and countries’ different compositions of economic growth. We explore the additional influence of economic structure in determining a country’s growth-poverty relationship and performance. Using multiplier and structural path analysis, we compare the experiences of Mozambique and Vietnam—two countries with similar levels and compositions of economic growth but divergent poverty outcomes. We find that the structure of the Vietnamese economy more naturally lends itself to generating broad-based growth. A given agricultural demand expansion in Mozambique will, ceteris paribus, achieve much less rural income growth than in Vietnam. Inadequate education, trade and transport systems are found to be more severe structural constraints to poverty reduction in Mozambique than in Vietnam. Investing in these areas can significantly enhance the effectiveness of Mozambican growth to reduce poverty.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Channing Arndt & Andres Garcia & Finn Tarp & James Thurlow, 2012. "Poverty Reduction and Economic Structure: Comparative Path Analysis for Mozambique and Vietnam," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 58(4), pages 742-763, December.
  • Handle: RePEc:bla:revinw:v:58:y:2012:i:4:p:742-763
    DOI: 10.1111/roiw.2012.58.issue-4
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/roiw.2012.58.issue-4
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Xavier Sala-i-Martin & Maxim Pinkovskiy, 2010. "African Poverty is Falling...Much Faster than You Think!," NBER Working Papers 15775, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Armando Caldeira-Pires & Sandra Maria da Luz & Silvia Palma-Rojas & Thiago Oliveira Rodrigues & Vanessa Chaves Silverio & Frederico Vilela & Paulo Cesar Barbosa & Ana Maria Alves, 2013. "Sustainability of the Biorefinery Industry for Fuel Production," Energies, MDPI, Open Access Journal, vol. 6(1), pages 1-22, January.
    2. Markus Jäntti & Ravi Kanbur & Milla Nyyssölä & Jukka Pirttilä, 2014. "Poverty and Welfare Measurement on the Basis of Prospect Theory," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(1), pages 182-205, March.
    3. Huong Thu Le & Alison L. Booth, 2014. "Inequality in Vietnamese Urban–Rural Living Standards, 1993–2006," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 862-886, December.
    4. Alfani, Federica & Azzarri, Carlo & d'Errico, Marco & Molini, Vasco, 2012. "Poverty in Mozambique : new evidence from recent household surveys," Policy Research Working Paper Series 6217, The World Bank.
    5. repec:unu:wpaper:wp2012-83 is not listed on IDEAS
    6. Andes Chivangue & Carlos Barros, 2017. "Poverty and Informal Trade," CEsA Working Papers 151, CEsA - Center for African, Asian and Latin American Studies.
    7. Dang Thi Thu Hoai & Finn Tarp & Dirk van Seventer & Ho Cong Hoa., 2016. "Growth and structural transformation in Viet Nam during the 2000s," WIDER Working Paper Series 108, World Institute for Development Economic Research (UNU-WIDER).
    8. Thurlow, James & Yang, Ling & Lahr, Michael L., 2012. "The (Declining) Role of Households in Sustaining China's Economy: Structural Path Analysis for 1997-2007," WIDER Working Paper Series 083, World Institute for Development Economic Research (UNU-WIDER).
    9. Arndt, Channing & Distante, Roberta & Hussain, M. Azhar & Østerdal, Lars Peter & Huong, Pham Lan & Ibraimo, Maimuna, 2012. "Ordinal Welfare Comparisons with Multiple Discrete Indicators: A First Order Dominance Approach and Application to Child Poverty," World Development, Elsevier, vol. 40(11), pages 2290-2301.
    10. Carlos Gradín & Finn Tarp, 2017. "Investigating growing inequality in Mozambique," WIDER Working Paper Series 208, World Institute for Development Economic Research (UNU-WIDER).
    11. Jones, Sam & Tarp, Finn, 2013. "Jobs and Welfare in Mozambique," WIDER Working Paper Series 045, World Institute for Development Economic Research (UNU-WIDER).
    12. Sam Jones & Finn Tarp, 2015. "Understanding Mozambique.s growth experience through an employment lens," WIDER Working Paper Series 109, World Institute for Development Economic Research (UNU-WIDER).
    13. Ellen Aabø & Thomas Kring, "undated". "The Political Economy of Large-Scale Agricultural Land Acquisitions: Implications for Food Security and Livelihoods/Employment Creation in Rural Mozambique," UNDP Africa Policy Notes 2012-004, United Nations Development Programme, Regional Bureau for Africa.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:revinw:v:58:y:2012:i:4:p:742-763. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/iariwea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.