IDEAS home Printed from https://ideas.repec.org/p/got/gotcrc/201.html
   My bibliography  Save this paper

Looking at Pro-Poor Growth from an Agricultural Perspective

Author

Listed:
  • Stephan Klasen

    (Georg-August University Göttingen)

  • Malte Reimers

    (University of Göttingen)

Abstract

Pro-poor growth has been identified as one of the most promising pathways to accelerate poverty reduction in developing countries. The diagnostic pro-poor growth toolbox has so far focused on the income dimension as well as key non-income achievements in education and health. This article contributes to the literature by expanding the toolbox with several new measures that take into account the extraordinary importance of agricultural productivity for poverty reduction in developing countries. We distinguish between land productivity and labor productivity and find that the poor identified by low incomes, poor education outcomes, poor health outcomes, low land productivity and low labor productivity overlap only to a small degree, suggesting that analyses of pro-poor growth from these different perspectives are complementary. The toolbox is then applied to three comparable household surveys from Rwanda (EICV data for the years 1999-2001, 2005- 2006, and 2010-2011), a country that has experienced impressive economic growth since the genocide in the mid-1990s and that has undertaken considerable efforts to increase agricultural productivity and improve the population’s access to social services over the first decade of the 2000s. Our application shows that the enormous progress made in the income, education and health dimension of well-being has been pro-poor according to most definitions of the concept. The new tools reveal that the land productivity-poor experienced pro-poor growth in the relative (and absolute) sense while the labor productivity-poor increased their labor productivity relatively (but not absolutely) faster than the labor productivity-rich even though the former dispose of considerably lower education levels.

Suggested Citation

  • Stephan Klasen & Malte Reimers, 2016. "Looking at Pro-Poor Growth from an Agricultural Perspective," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 201, Courant Research Centre PEG.
  • Handle: RePEc:got:gotcrc:201
    as

    Download full text from publisher

    File URL: http://www2.vwl.wiso.uni-goettingen.de/courant-papers/CRC-PEG_DP_201.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Juliano J. Assunção & Luis H. B. Braido, 2007. "Testing Household-Specific Explanations for the Inverse Productivity Relationship," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 980-990.
    2. Alberto Alesina & Dani Rodrik, 1994. "Distributive Politics and Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 109(2), pages 465-490.
    3. Ayal Kimhi, 2006. "Plot size and maize productivity in Zambia: is there an inverse relationship?," Agricultural Economics, International Association of Agricultural Economists, vol. 35(1), pages 1-9, July.
    4. Ansoms, An & Verdoodt, Ann & Van Ranst, Eric, 2008. "The inverse relationship between farm size and productivity in rural Rwanda," IOB Discussion Papers 2008.09, Universiteit Antwerpen, Institute of Development Policy (IOB).
    5. Christiaensen, Luc & Demery, Lionel & Kuhl, Jesper, 2011. "The (evolving) role of agriculture in poverty reduction--An empirical perspective," Journal of Development Economics, Elsevier, vol. 96(2), pages 239-254, November.
    6. Amartya K. Sen, 1966. "Peasants and Dualism with or without Surplus Labor," Journal of Political Economy, University of Chicago Press, vol. 74, pages 425-425.
    7. Byiringiro, Fidele & Reardon, Thomas, 1996. "Farm productivity in Rwanda: effects of farm size, erosion, and soil conservation investments," Agricultural Economics, Blackwell, vol. 15(2), pages 127-136, November.
    8. Shenggen Fan & Peter Hazell & Sukhadeo Thorat, 2000. "Government Spending, Growth and Poverty in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 1038-1051.
    9. Oded Galor & Joseph Zeira, 1993. "Income Distribution and Macroeconomics," Review of Economic Studies, Oxford University Press, vol. 60(1), pages 35-52.
    10. Assunção, Juliano & Braido, Luis H.B., 2007. "AJAE Appendix: Testing Household-Specific Explanations for the Inverse Productivity Relationship," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 89(4), pages 1-8, November.
    11. Shenggen Fan & Xiaobo Zhang, 2008. "Public Expenditure, Growth and Poverty Reduction in Rural Uganda," African Development Review, African Development Bank, vol. 20(3), pages 466-496.
    12. Beegle, Kathleen & Carletto, Calogero & Himelein, Kristen, 2012. "Reliability of recall in agricultural data," Journal of Development Economics, Elsevier, vol. 98(1), pages 34-41.
    13. Sen, Amartya, 1983. "Poor, Relatively Speaking," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 153-169, July.
    14. Sudhir Anand & Martin Ravallion, 1993. "Human Development in Poor Countries: On the Role of Private Incomes and Public Services," Journal of Economic Perspectives, American Economic Association, vol. 7(1), pages 133-150, Winter.
    15. Shenggen Fan & Ashok Gulati & Sukhadeo Thorat, 2008. "Investment, subsidies, and pro-poor growth in rural India," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 163-170, September.
    16. Nanak Kakwani & Shahid Khandker & Hyun H. Son, 2004. "Pro-poor growth: concepts and measurement with country case studies," Working Papers 1, International Policy Centre for Inclusive Growth.
    17. Frisvold, George B., 1994. "Does supervision matter? Some hypothesis tests using Indian farm-level data," Journal of Development Economics, Elsevier, vol. 43(2), pages 217-238, April.
    18. Barrett, Christopher B. & Bellemare, Marc F. & Hou, Janet Y., 2010. "Reconsidering Conventional Explanations of the Inverse Productivity-Size Relationship," World Development, Elsevier, vol. 38(1), pages 88-97, January.
    19. Kwadwo Asenso‐Okyere & Felix A. Asante & Jifar Tarekegn & Kwaw S. Andam, 2011. "A review of the economic impact of malaria in agricultural development," Agricultural Economics, International Association of Agricultural Economists, vol. 42(3), pages 293-304, May.
    20. Bhalla, Surjit S., 1988. "Does land quality matter? : Theory and measurement," Journal of Development Economics, Elsevier, vol. 29(1), pages 45-62, July.
    21. Bardhan, Pranab K, 1973. "Size, Productivity, and Returns to Scale: An Analysis of Farm-Level Data in Indian Agriculture," Journal of Political Economy, University of Chicago Press, vol. 81(6), pages 1370-1386, Nov.-Dec..
    22. Barro, Robert J. & Lee, Jong-Wha, 1993. "International comparisons of educational attainment," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 363-394, December.
    23. Timothy Besley & Louise J. Cord, 2007. "Delivering on the Promise of Pro-Poor Growth : Insights and Lessons from Country Experiences," World Bank Publications, The World Bank, number 7180.
    24. Ravallion, Martin, 2001. "Growth, Inequality and Poverty: Looking Beyond Averages," World Development, Elsevier, vol. 29(11), pages 1803-1815, November.
    25. Byiringiro, Fidele & Reardon, Thomas, 1996. "Farm productivity in Rwanda: effects of farm size, erosion, and soil conservation investments," Agricultural Economics, Blackwell, vol. 15(2), pages 127-136, November.
    26. Grosse, Melanie & Harttgen, Kenneth & Klasen, Stephan, 2008. "Measuring Pro-Poor Growth in Non-Income Dimensions," World Development, Elsevier, vol. 36(6), pages 1021-1047, June.
    27. Bhalla, Surjit S & Roy, Prannoy L, 1988. "Mis-specification in Farm Productivity Analysis: The Role of Land Quality," Oxford Economic Papers, Oxford University Press, vol. 40(1), pages 55-73, March.
    28. Malte Reimers & Stephan Klasen, 2013. "Revisiting the Role of Education for Agricultural Productivity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(1), pages 131-152.
    29. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June.
    30. Jean-Yves Duclos, 2009. "What is “Pro-Poor”?," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 32(1), pages 37-58, January.
    31. Benjamin, Dwayne, 1995. "Can unobserved land quality explain the inverse productivity relationship?," Journal of Development Economics, Elsevier, vol. 46(1), pages 51-84, February.
    32. Croppenstedt, Andre & Muller, Christophe, 2000. "The Impact of Farmers' Health and Nutritional Status on Their Productivity and Efficiency: Evidence from Ethiopia," Economic Development and Cultural Change, University of Chicago Press, vol. 48(3), pages 475-502, April.
    33. Valdés, Alberto & Foster, William, 2010. "Reflections on the Role of Agriculture in Pro-Poor Growth," World Development, Elsevier, vol. 38(10), pages 1362-1374, October.
    34. Stephan Klasen, 2003. "In Search of The Holy Grail: How to Achieve Pro-Poor Growth ?," Ibero America Institute for Econ. Research (IAI) Discussion Papers 096, Ibero-America Institute for Economic Research.
    35. Antle, John M. & Cole, Donald C. & Crissman, Charles C., 1998. "Further evidence on pesticides, productivity and farmer health: potato production in Ecuador," Agricultural Economics, Blackwell, vol. 18(2), pages 199-207, March.
    36. van de Walle, Dominique, 1998. "Assessing the welfare impacts of public spending," World Development, Elsevier, vol. 26(3), pages 365-379, March.
    37. Frank Ellis, 1998. "Household strategies and rural livelihood diversification," Journal of Development Studies, Taylor & Francis Journals, vol. 35(1), pages 1-38.
    38. M. N. Asadullah & S. Rahman, 2009. "Farm productivity and efficiency in rural Bangladesh: the role of education revisited," Applied Economics, Taylor & Francis Journals, vol. 41(1), pages 17-33.
    39. Alain de Janvry & Elisabeth Sadoulet, 2010. "Agricultural Growth and Poverty Reduction: Additional Evidence," World Bank Research Observer, World Bank Group, vol. 25(1), pages 1-20, February.
    40. Ulimwengu, John M., 2009. "Farmers’ health and agricultural productivity in rural Ethiopia," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 3(2), pages 1-18, September.
    41. Klasen, Stephan, 2008. "Economic Growth and Poverty Reduction: Measurement Issues using Income and Non-Income Indicators," World Development, Elsevier, vol. 36(3), pages 420-445, March.
    42. Son, Hyun Hwa, 2004. "A note on pro-poor growth," Economics Letters, Elsevier, vol. 82(3), pages 307-314, March.
    43. Antle, John M. & Cole, Donald C. & Crissman, Charles C., 1998. "Further evidence on pesticides, productivity and farmer health: potato production in Ecuador," Agricultural Economics, Blackwell, vol. 18(2), pages 199-207, March.
    44. Howe, Gerard & McKay, Andrew, 2007. "Combining Quantitative and Qualitative Methods in Assessing Chronic Poverty: The Case of Rwanda," World Development, Elsevier, vol. 35(2), pages 197-211, February.
    45. Mubarik Ali & John C. Flinn, 1989. "Profit Efficiency Among Basmati Rice Producers in Pakistan Punjab," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(2), pages 303-310.
    46. Lamb, Russell L., 2003. "Inverse productivity: land quality, labor markets, and measurement error," Journal of Development Economics, Elsevier, vol. 71(1), pages 71-95, June.
    47. Barrett, Christopher B., 1996. "On price risk and the inverse farm size-productivity relationship," Journal of Development Economics, Elsevier, vol. 51(2), pages 193-215, December.
    48. Maria L. Loureiro, 2009. "Farmers' health and agricultural productivity," Agricultural Economics, International Association of Agricultural Economists, vol. 40(4), pages 381-388, July.
    49. Binswanger, Hans P. & Deininger, Klaus & Feder, Gershon, 1995. "Power, distortions, revolt and reform in agricultural land relations," Handbook of Development Economics,in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 42, pages 2659-2772 Elsevier.
    50. Fan, Shenggen (ed.), 2008. "Public expenditures, growth, and poverty: Lessons from developing countries," IFPRI books, International Food Policy Research Institute (IFPRI), number 978-0-8018-8859-5.
    51. Angus Deaton & Salman Zaidi, 2002. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," World Bank Publications, The World Bank, number 14101, December.
    52. van de Walle, Dominique, 1995. "Public spending and the poor : what we know, what we need to know," Policy Research Working Paper Series 1476, The World Bank.
    53. Lanjouw, Peter & Ravallion, Martin, 1999. "Benefit Incidence, Public Spending Reforms, and the Timing of Program Capture," World Bank Economic Review, World Bank Group, vol. 13(2), pages 257-273, May.
    54. World Bank, 2012. "World Development Indicators 2012," World Bank Publications, The World Bank, number 6014.
    55. Francois Bourguignon, 2004. "The Poverty-growth-inequality triangle," Indian Council for Research on International Economic Relations, New Delhi Working Papers 125, Indian Council for Research on International Economic Relations, New Delhi, India.
    56. Ravallion, Martin & Chen, Shaohua, 2003. "Measuring pro-poor growth," Economics Letters, Elsevier, vol. 78(1), pages 93-99, January.
    57. Denise Young & Honghai Deng, 1999. "The effects of education in early-stage agriculture: some evidence from China," Applied Economics, Taylor & Francis Journals, vol. 31(11), pages 1315-1323.
    58. Feder, Gershon, 1985. "The relation between farm size and farm productivity : The role of family labor, supervision and credit constraints," Journal of Development Economics, Elsevier, vol. 18(2-3), pages 297-313, August.
    59. Saksena, Priyanka & Antunes, Adélio Fernandes & Xu, Ke & Musango, Laurent & Carrin, Guy, 2011. "Mutual health insurance in Rwanda: Evidence on access to care and financial risk protection," Health Policy, Elsevier, vol. 99(3), pages 203-209, March.
    60. Ravallion, Martin & Datt, Gaurav, 2002. "Why has economic growth been more pro-poor in some states of India than others?," Journal of Development Economics, Elsevier, vol. 68(2), pages 381-400, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:gam:jsusta:v:10:y:2018:i:3:p:815-:d:136322 is not listed on IDEAS
    2. repec:spr:qualqt:v:52:y:2018:i:5:d:10.1007_s11135-017-0654-9 is not listed on IDEAS

    More about this item

    Keywords

    Agricultural Productivity; Inequality; Multidimensional Poverty; Pro-Poor Growth; Rwanda; Sub-Saharan Africa;

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:got:gotcrc:201. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dominik Noe). General contact details of provider: http://www.uni-goettingen.de/en/82144.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.