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Assets, Shocks, and Poverty Traps in Rural Mozambique

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  • Giesbert, Lena
  • Schindler, Kati

Abstract

This paper explores welfare dynamics among households in rural Mozambique. Using household panel data, we test whether an asset-based poverty trap exists. Findings indicate that all rural households converge to one stable equilibrium in the medium term, which is close to the poverty line. This may indicate that households in rural Mozambique are collectively trapped in generalized underdevelopment. A drought and household coping strategies help to explain the observed poverty dynamics. Food-insecure households who have better access to income-generating opportunities and who can afford drawing on unproductive assets are able to sustain their productive asset base in the short term.

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  • Giesbert, Lena & Schindler, Kati, 2012. "Assets, Shocks, and Poverty Traps in Rural Mozambique," World Development, Elsevier, vol. 40(8), pages 1594-1609.
  • Handle: RePEc:eee:wdevel:v:40:y:2012:i:8:p:1594-1609
    DOI: 10.1016/j.worlddev.2012.04.002
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    Cited by:

    1. Muntaha Rakib & Julia Anna Matz, 2016. "The Impact of Shocks on Gender-differentiated Asset Dynamics in Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 52(3), pages 377-395, March.
    2. Kurosaki, Takashi, 2017. "Household-Level Recovery after Floods in a Tribal and Conflict-Ridden Society," World Development, Elsevier, vol. 94(C), pages 51-63.
    3. Christina Kinghan & Carol Newman, 2015. "Social capital, political connections, and household Enterprises: Evidence from Vietnam," WIDER Working Paper Series wp-2015-001, World Institute for Development Economic Research (UNU-WIDER).
    4. Andy McKay & Emilie Perge, 2013. "How Strong is the Evidence for the Existence of Poverty Traps? A Multicountry Assessment," Journal of Development Studies, Taylor & Francis Journals, vol. 49(7), pages 877-897, July.
    5. Geoffrey M. Kistruck & Patrick Shulist, 0. "Linking Management Theory with Poverty Alleviation Efforts Through Market Orchestration," Journal of Business Ethics, Springer, vol. 0, pages 1-24.
    6. Hill, Daniel, 2020. "Technology heterogeneity and poverty traps: A latent class approach to technology gap drivers of chronic poverty," 2020 Conference (64th), February 12-14, 2020, Perth, Western Australia 305253, Australian Agricultural and Resource Economics Society.
    7. McDougal, Topher & Caruso, Raul, 2013. "Wartime Violence and Post-Conflict Development Policy: The Case of Agricultural Concessions in Mozambique," NEPS Working Papers 1/2013, Network of European Peace Scientists.
    8. Azreen Karim & Ilan Noy, 2016. "Poverty and Natural Disasters: A Meta-Regression Analysis," Review of Economics and Institutions, Università di Perugia, vol. 7(2).
    9. Schicks, Jessica, 2014. "Over-Indebtedness in Microfinance – An Empirical Analysis of Related Factors on the Borrower Level," World Development, Elsevier, vol. 54(C), pages 301-324.
    10. Carol Newman & Christina Kinghan, 2015. "Economic Transformation and the Diversification of Livelihoods in Rural Vietnam," WIDER Working Paper Series wp-2015-064, World Institute for Development Economic Research (UNU-WIDER).
    11. Christopher B. Barrett & Teevrat Garg & Linden McBride, 2016. "Well-Being Dynamics and Poverty Traps," Annual Review of Resource Economics, Annual Reviews, vol. 8(1), pages 303-327, October.
    12. Goh, Amelia H. X., 2012. "A literature review of the gender-differentiated impacts of climate change on women's and men's assets and well-being in developing countries:," CAPRi working papers 106, International Food Policy Research Institute (IFPRI).
    13. You, Jing, 2014. "Risk, under-investment in agricultural assets and dynamic asset poverty in rural China," China Economic Review, Elsevier, vol. 29(C), pages 27-45.
    14. Hang, Yuan, 2017. "Is There a Poverty Trap of multiple Dynamic Equilibria? The Analysis on Data of Rural Fixed Observation Point from 2004 to 2012," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 257264, Agricultural and Applied Economics Association.
    15. Ronny Correa-Quezada & Diego Fernando García-Vélez & María de la Cruz Del Río-Rama & José Álvarez-García, 2018. "Poverty Traps in the Municipalities of Ecuador: Empirical Evidence," Sustainability, MDPI, Open Access Journal, vol. 10(11), pages 1-1, November.
    16. Katharina Lehmann-Uschner & Kati Krähnert, 2018. "When Shocks Become Persistent: Household-Level Asset Growth in the Aftermath of an Extreme Weather Event," Discussion Papers of DIW Berlin 1759, DIW Berlin, German Institute for Economic Research.
    17. Alan Brauw, 2015. "Gender, control, and crop choice in northern Mozambique," Agricultural Economics, International Association of Agricultural Economists, vol. 46(3), pages 435-448, May.
    18. Solomon Zena Walelign & Mariève Pouliot & Helle Overgaard Larsen & Carsten Smith-Hall, 2015. "A novel approach to dynamic livelihood clustering: Empirical evidence from Nepal," IFRO Working Paper 2015/09, University of Copenhagen, Department of Food and Resource Economics.
    19. Carol Newman & Christina Kinghan, 2015. "Economic transformation and the diversification of livelihoods in rural Vietnam," WIDER Working Paper Series 064, World Institute for Development Economic Research (UNU-WIDER).
    20. Mburu, Samuel & Kaiser, Micha & Sousa-Poza, Alfonso, 2017. "Livestock asset dynamics among pastoralists in Northern Kenya," Hohenheim Discussion Papers in Business, Economics and Social Sciences 25-2017, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    21. Kurosaki, Takashi, 2015. "Household-Level Recovery after Floods in a Tribal and Conflict-Ridden Society," CEI Working Paper Series 2015-5, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    22. Swati Dutta, 2015. "Identifying Single or Multiple Poverty Trap: An Application to Indian Household Panel Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 120(1), pages 157-179, January.
    23. Carol Newman & Christina Kinghan, 2015. "Social capital, political connections, and household enterprises: Evidence from Vietnam," WIDER Working Paper Series 001, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    assets; poverty trap; shocks; Africa; Mozambique;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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