IDEAS home Printed from https://ideas.repec.org/a/cje/issued/v37y2004i1p123-139.html

Escaping the poverty trap in a developing rural economy

Author

Listed:
  • Nguyen Manh Hung
  • Paul Makdissi

Abstract

In this paper, we examine the economic policies that might allow a developing rural economy to escape from the poverty trap characterized by a subsistence level of per capita consumption in the long run. In our model where labour is combined to land available in fixed quantity to produce a homogeneous good, saving could be made through only having children, the number of which is an endogenous decision. We provide conditions under which the economy runs into a poverty trap, and proceed to analyse the relevant policies in this case. We demonstrate that an escape from this poverty trap is possible through a suitable technology transfer, or an appropriate child-rearing tax, but not with a foreign manufacturing sector, which increases only temporarily the labour income in this rural economy.

Suggested Citation

  • Nguyen Manh Hung & Paul Makdissi, 2004. "Escaping the poverty trap in a developing rural economy," Canadian Journal of Economics, Canadian Economics Association, vol. 37(1), pages 123-139, February.
    • Handle: RePEc:cje:issued:v:37:y:2004:i:1:p:123-139
    as

    Download full text from publisher

    File URL: https://www.jstor.org/stable/3696101
    Download Restriction: only available to JSTOR subscribers
    ---><---

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

    for a different version of it.

    Other versions of this item:

    Citations

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


    Cited by:

    1. Donatella Saccone & Matteo Migheli, 2022. "Free to escape? Economic freedoms, growth and poverty traps," Review of Development Economics, Wiley Blackwell, vol. 26(3), pages 1518-1554, August.
    2. Aurora Teixeira & Pedro Vieira, 2005. "Escaping from poverty through compulsory schooling," Notas Económicas, Faculty of Economics, University of Coimbra, issue 21, pages 6-15, June.
    3. Indra Maipita & Wawan Hermawan & Fitrawaty, 2012. "Reducing Poverty Through Subsidies: Simulation of Fuel Subsidy Diversion to Non-Food Crops," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 14(4), pages 349-366, April.

    More about this item

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

    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:cje:issued:v:37:y:2004:i:1:p:123-139. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Prof. Werner Antweiler (email available below). General contact details of provider: https://edirc.repec.org/data/ceaaaea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.