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Reflections on the Role of Agriculture in Pro-Poor Growth

  • Valdés, Alberto
  • Foster, William

Summary This paper assesses the importance of agriculture poverty reduction, largely through its impact on overall economic growth, drawing on evidence from Latin America and other developing regions. The econometric evidence strongly suggests that the sector contributes to growth more than its share of GDP, certainly in Latin America but also elsewhere. Cross-country studies show that, on average in the developing world, agriculture tends to have an impact on both national growth and poverty reduction that is greater than its simple share of national GDP. The results reinforce the argument against taxing agriculture relative to other sectors and that in assigning government expenditures to public goods one should take into account the historical relationship between agricultural growth and the subsequent non-agricultural growth. The paper also considers approaches to stimulate the rural economy.

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Article provided by Elsevier in its journal World Development.

Volume (Year): 38 (2010)
Issue (Month): 10 (October)
Pages: 1362-1374

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Handle: RePEc:eee:wdevel:v:38:y:2010:i:10:p:1362-1374
Contact details of provider: Web page: http://www.elsevier.com/locate/worlddev

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  1. Foster, Andrew D & Rosenzweig, Mark R, 2004. "Agricultural Productivity Growth, Rural Economic Diversity, and Economic Reforms: India, 1970-2000," Economic Development and Cultural Change, University of Chicago Press, vol. 52(3), pages 509-42, April.
  2. Raimundo Soto & Arístides Torche, 2004. "Spatial Inequality, Migration and Economic Growth in Chile," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 41(124), pages 401-424.
  3. Gundlach, Erich & Navarro de Pablo, José & Weisert, Natascha, 2004. "Education is good for the poor: a note on Dollar and Kraay," Open Access Publications from Kiel Institute for the World Economy 3199, Kiel Institute for the World Economy (IfW).
  4. Carlos Leite & Charalambos G. Tsangarides & Dhaneshwar Ghura, 2002. "Is Growth Enough? Macroeconomic Policy and Poverty Reduction," IMF Working Papers 02/118, International Monetary Fund.
  5. David de Ferranti & Guillermo E. Perry & William Foster & Daniel Lederman & Alberto Valdés, 2005. "Beyond the City: The Rural Contribution to Development," World Bank Publications, The World Bank, number 7328.
  6. Ravallion, Martin, 2001. "Growth, Inequality and Poverty: Looking Beyond Averages," World Development, Elsevier, vol. 29(11), pages 1803-1815, November.
  7. Arellano, Manuel, 2003. "Panel Data Econometrics," OUP Catalogue, Oxford University Press, number 9780199245291, March.
  8. Dollar, David & Kraay, Aart, 2002. " Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
  9. Ravallion, Martin, 2002. "Externalities in rural development - evidence for China," Policy Research Working Paper Series 2879, The World Bank.
  10. Frank Ellis & H Ade Freeman, 2004. "Rural Livelihoods and Poverty Reduction Strategies in Four African Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 40(4), pages 1-30.
  11. Ravallion, Martin, 2004. "Pro-poor growth : A primer," Policy Research Working Paper Series 3242, The World Bank.
  12. Delgado, Christopher L. & Hopkins, Jane & Kelly , Valerie & Hazell, P. B. R. & McKenna, Anna A. & Gruhn, Peter & Hojjati, Behjat & Sil, Jayashree & Courbois, Claude, 1998. "Agricultural growth linkages in Sub-Saharan Africa:," Research reports 107, International Food Policy Research Institute (IFPRI).
  13. Timmer, C. Peter, 2002. "Agriculture and economic development," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 29, pages 1487-1546 Elsevier.
  14. Lopez, Ramon, 2005. "Why governments should stopnon-social subsidies : measuring their consequences for rural Latin America," Policy Research Working Paper Series 3609, The World Bank.
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