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Assets and Poverty Traps in Rural Bangladesh

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  • Agnes R. Quisumbing
  • Bob Baulch

Abstract

Using longitudinal survey from rural Bangladesh, this article examines the determinants of land and asset accumulation over time and explores why some households may be trapped in asset poverty. Non-parametric and parametric methods are used to discern the shape of the asset accumulation path, and whether unique or multiple equilibria exist. We find evidence for concavity of the dynamic asset frontier but no evidence for multiple equilibria. It is suggested that the existence of well-functioning factor markets in rural Bangladesh and elsewhere in South Asia explain the contrasts between our results and those for several African countries.

Suggested Citation

  • Agnes R. Quisumbing & Bob Baulch, 2013. "Assets and Poverty Traps in Rural Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 49(7), pages 898-916, July.
  • Handle: RePEc:taf:jdevst:v:49:y:2013:i:7:p:898-916
    DOI: 10.1080/00220388.2013.785524
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    Cited by:

    1. Arunachalam, Raj & Shenoy, Ajay, 2017. "Poverty traps, convergence, and the dynamics of household income," Journal of Development Economics, Elsevier, vol. 126(C), pages 215-230.
    2. repec:bla:devpol:v:36:y:2018:i:1:p:3-34 is not listed on IDEAS
    3. 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.
    4. 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.
    5. Haider, Hamza, "undated". "Asset Management & Coping Strategies in Burkina Faso," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259956, Agricultural and Applied Economics Association.
    6. Ahmed, M. & Gautam, M. & Sen, B., 2018. "Waves of Change: Understanding Ascent, Descent and Persistence of Poverty in Rural Bangladesh," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277340, International Association of Agricultural Economists.
    7. 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.

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