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Poverty, Income Inequality, and Irrigation Development: Longitudinal Evidence from Palawan, Philippines

Author

Listed:
  • Gerald Shively

    () (Purdue University)

  • Richard Yao

    () (The University of Waikato, New Zealand)

Abstract

We measure the impacts of irrigation development on poverty and income inequality in a frontier region of the Philippines. Using household panel data we measure changes in standard poverty measures and income inequality over the period 1995–2002. We make comparisons within the beneficiary community and between the beneficiary community and an adjacent community that, while not affected directly by irrigation services, was indirectly affected through expanded labor market opportunities arising from irrigation. Results of the analyses, including poverty and inequality decompositions, suggest lowland irrigation development led to reduced income inequality and lower rates of poverty in the lowland community, reduced inequality and lower rates of poverty for the group of upland households who participated in off-farm work on irrigated lowland farms, and higher overall income inequality between the lowland and upland communities.

Suggested Citation

  • Gerald Shively & Richard Yao, 2015. "Poverty, Income Inequality, and Irrigation Development: Longitudinal Evidence from Palawan, Philippines," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 12(1), pages 1-17, June.
  • Handle: RePEc:sag:seajad:v:12:y:2015:i:1:p:1-17
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    References listed on IDEAS

    as
    1. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    2. Rajan K. Sampath, 1990. "On Some Aspects of Irrigation Distribution in India," Land Economics, University of Wisconsin Press, vol. 66(4), pages 448-463.
    3. Ravallion, M., 1992. "Poverty Comparisons - A Guide to Concepts and Methods," Papers 88, World Bank - Living Standards Measurement.
    4. Hussain, Intizar & Wijerathna, Deeptha, 2004. "Irrigation and income-poverty alleviation: a comparative analysis of irrigation systems in developing Asia," IWMI Research Reports H036165, International Water Management Institute.
    5. Gerald Shively & Monica Fisher, 2004. "Smallholder Labor and Deforestation: A Systems Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1361-1366.
    6. Braun, Denny, 1988. "Multiple Measurements of U.S. Income Inequality," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 398-405, August.
    7. Shujie Yao & Jirui Liu, 1996. "Decomposition of Gini coefficients by class: a new approach," Applied Economics Letters, Taylor & Francis Journals, vol. 3(2), pages 115-119.
    8. Fisher, Monica, 2004. "Household welfare and forest dependence in Southern Malawi," Environment and Development Economics, Cambridge University Press, vol. 9(02), pages 135-154, May.
    9. Thapa, Ganesh & Otsuka, Keijiro & Barker, Randolph, 1992. "Effect of modern rice varieties and irrigation on household income distribution in Nepalese villages," Agricultural Economics, Blackwell, vol. 7(3-4), pages 245-265, October.
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    More about this item

    Keywords

    inequality; irrigation; Philippines; poverty decomposition; rice;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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