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Livestock sector development, economic growth, and poverty reduction


  • Achilles Costales

    (College of Social Sciences, University of the Philippines Baguio)


The global distribution of poor livestock keepers tailors closely the regional distribution of poverty densities in the developing world. Reducing poverty among this group requires livestock sector growth in these regions. As per capita incomes expand, household expenditures on meat and milk grow faster than those on grains and cereals. Strong growth in demand for meat and milk presents a significant catalyst for expansion of the economic activity and incomes of rural smallholder livestock keepers. More recent data show that the larger majority of rural households even in low-income developing countries are market-oriented rather than pure subsistence producers. Public investments that efficiently link livestock products to centers of domestic demand will allow rural livestock producers to capture the societal value accorded to their higher-value meat and milk products. The subsequent growth of livestock-related rural industries along the market chain offers an additional growth and poverty-reducing channel via spillover impacts.

Suggested Citation

  • Achilles Costales, 2010. "Livestock sector development, economic growth, and poverty reduction," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 47(2), pages 41-54, December.
  • Handle: RePEc:phs:prejrn:v:47:y:2010:i:2:p:41-54

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    References listed on IDEAS

    1. Chen, Shaohua & Ravallion, Martin, 2007. "The changing profile of poverty in the world:," 2020 vision briefs BB01 Special Edition, International Food Policy Research Institute (IFPRI).
    2. Dollar, David & Kraay, Aart, 2002. "Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
    3. Ravallion, Martin, 2007. "Economic growth and poverty reduction: Do poor countries need to worry about inequality?," 2020 vision briefs BB08 Special Edition, International Food Policy Research Institute (IFPRI).
    4. Diaz-Bonilla, Eugenio, 2007. "Global macroeconomic development: The implications for poverty," 2020 vision briefs BB10 Special Edition, International Food Policy Research Institute (IFPRI).
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    More about this item


    sector growth; poverty reduction; smallholders; market links;

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development


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