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Why have some Indian states performed better than others at reducing rural poverty?

  • Datt, Gaurav
  • Ravallion, Martin

Rural poverty rankings of Indian states in 1990 were very different from 1960. This unevenness in progress allows us to study the causes of poverty in a developing rural economy. We model the evolution of various poverty measures, using pooled state-level data for the period 1957-91. Differences in trend rates of poverty reduction are attributed to differing growth rates of farm yield per acre, and differing initial conditions; states starting with better infrastructure and human resources saw significantly higher long-term rates of poverty reduction. Deviations from the trend are attributed to inflation (which hurt the poor in the short term) and shocks to farm and nonfarm output.

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Paper provided by International Food Policy Research Institute (IFPRI) in its series FCND discussion papers with number 26.

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Date of creation: 1997
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Handle: RePEc:fpr:fcnddp:26
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  1. Sargan, J D, 1980. "Some Tests of Dynamic Specification for a Single Equation," Econometrica, Econometric Society, vol. 48(4), pages 879-97, May.
  2. Hammond, Peter J & Rodriguez-Clare, Andres, 1993. " On Endogenizing Long-Run Growth," Scandinavian Journal of Economics, Wiley Blackwell, vol. 95(4), pages 391-425, December.
  3. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  4. Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," World Bank Economic Review, World Bank Group, vol. 10(1), pages 1-25, January.
  5. Datt, Gaurav & Ravallion, Martin, 1990. "Regional disparities, targeting, and poverty in India," Policy Research Working Paper Series 375, The World Bank.
  6. Lipton, Michael & Ravallion, Martin, 1993. "Poverty and policy," Policy Research Working Paper Series 1130, The World Bank.
  7. Ravallion, Martin & Datt, Gaurav, 1995. "Growth and poverty in rural India," Policy Research Working Paper Series 1405, The World Bank.
  8. Bell, Clive & Rich, Robert, 1994. "Rural Poverty and Aggregate Agricultural Performance in Post-independence India," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 56(2), pages 111-33, May.
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