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Pro-poorness of Rural Economic Growth and the Roles of Education in Bhutan, 2007 - 2017


  • Takahiro Akita

    (IUJ Research Institute, International University of Japan)

  • Dorji Lethro

    (National Statistics Bureau, Royal Government of Bhutan)


This study examines whether Bhutan’s rural economic growth was pro-poor from 2007-2017 by using expenditure data from the Bhutan Living Standard Surveys. It also conducts an IV probit analysis to explore the determinants of poverty. Even in rural areas, growth is necessary for the reduction of poverty. Besides relying on trickle-down effects from hydropower projects and tourism, promotion of agriculture-based small scale industries is essential for the acceleration of rural economic growth, where further development of basic industrial infrastructure and socioeconomic facilities is imperative. The country also needs to further promote and strengthen basic education in rural areas since education is found to have played an important role in reducing poverty. Many rural households are vulnerable to poverty. To prevent vulnerable households from falling into poverty, more effective social safety net programs may be necessary based on regional differences in factors affecting living conditions.

Suggested Citation

  • Takahiro Akita & Dorji Lethro, 2021. "Pro-poorness of Rural Economic Growth and the Roles of Education in Bhutan, 2007 - 2017," Working Papers EMS_2021_06, Research Institute, International University of Japan.
  • Handle: RePEc:iuj:wpaper:ems_2021_06

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    pro-poor growth; rural economic growth; poverty incidence. expenditure inequality; education; Bhutan;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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