IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

The (Evolving) Role of Agriculture in Poverty Reduction: An Empirical Perspective

  • Christiaensen,Luc
  • Demery,Lionel
  • Kuhl, Jesper

The role of agriculture in development remains much debated. This paper takes an empirical perspective and focuses on poverty, as opposed to growth alone. The contribution of a sector to poverty reduction is shown to depend on its own growth performance, its indirect impact on growth in other sectors, the extent to which poor people participate in the sector, and the size of the sector in the overall economy. Bringing together these different effects using cross-country econometric evidence indicates that agriculture is significantly more effective than nonagriculture in reducing poverty among the poorest of the poor (as reflected in the $1-day squared poverty gap). It is also up to 3.2 times better at reducing $1-day headcount poverty in low-income and resource-rich countries (including those in sub-Saharan Africa), at least when societies are not fundamentally unequal. However, when it comes to the better-off poor (reflected in the $2-day measure), non-agriculture has the edge. These results are driven by the much larger participation of poorer households in growth from agriculture and the lower poverty-reducing effect of non-agriculture in the presence of extractive industries.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.wider.unu.edu/stc/repec/pdfs/wp2010/wp2010-36.pdf
Download Restriction: no

Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Working Paper WP2010/36.

as
in new window

Length: 39 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:unu:wpaper:wp2010-36
Contact details of provider: Postal: Katajanokanlaituri 6B, 00160 Helsinki
Phone: +358-9-6159911
Fax: +358-9-61599333
Web page: http://www.wider.unu.edu/
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Maertens, Miet & Swinnen, Johan F.M., 2007. "Trade, Standards and Poverty. Evidence from Senegal," 106th Seminar, October 25-27, 2007, Montpellier, France 7924, European Association of Agricultural Economists.
  2. Nin Pratt, Alejandro & Yu, Bingxin, 2009. "An Updated Look at the Recovery of Agricultural Productivity in Sub-Saharan Africa," 2009 Conference, August 16-22, 2009, Beijing, China 51731, International Association of Agricultural Economists.
  3. Ravallion, Martin & Shaohua Chen, 2001. "Measuring pro-poor growth," Policy Research Working Paper Series 2666, The World Bank.
  4. Hayami, Yujiro, 2007. "An emerging agricultural problem in high-performing Asian economies," Policy Research Working Paper Series 4312, The World Bank.
  5. Paul Dorosh & Muhammad Khan Niazi & Hina Nazli, 2003. "Distributional Impacts of Agricultural Growth in Pakistan: A Multiplier Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(3), pages 249-275.
  6. Vernon Henderson & Adam Storeygard & David N. Weil, 2009. "Measuring Economic Growth from Outer Space," Working Papers 2009-8, Brown University, Department of Economics.
  7. Loayza, Norman V. & Raddatz, Claudio, 2010. "The composition of growth matters for poverty alleviation," Journal of Development Economics, Elsevier, vol. 93(1), pages 137-151, September.
  8. David Roodman, 2006. "How to Do xtabond2: An Introduction to "Difference" and "System" GMM in Stata," Working Papers 103, Center for Global Development.
  9. Amsden, Alice H., 1991. "Big business and urban congestion in Taiwan: The origins of small enterprise and regionally decentralized industry (respectively)," World Development, Elsevier, vol. 19(9), pages 1121-1135, September.
  10. Augustin Kwasi Fosu, 2009. "Inequality and the Impact of Growth on Poverty: Comparative Evidence for Sub-Saharan Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 45(5), pages 726-745.
  11. Delgado, Christopher L. & Hopkins, Jane & Kelly , Valerie & Hazell, P. B. R. & McKenna, Anna A. & Gruhn, Peter & Hojjati, Behjat & Sil, Jayashree & Courbois, Claude, 1998. "Agricultural growth linkages in Sub-Saharan Africa:," Research reports 107, International Food Policy Research Institute (IFPRI).
  12. Anand, Sudhir & Kanbur, S M R, 1985. "Poverty under the Kuznets Process," Economic Journal, Royal Economic Society, vol. 95(380a), pages 42-50, Supplemen.
  13. Richard Blundell & Steve Bond, 1995. "Initial conditions and moment restrictions in dynamic panel data models," IFS Working Papers W95/17, Institute for Fiscal Studies.
  14. Bourguignon, F. & Morrisson, C., 1995. "Inequality and Development: The Role of Dualism," DELTA Working Papers 95-32, DELTA (Ecole normale supérieure).
  15. François Bourguignon, 2002. "The growth elasticity of poverty reduction : explaining heterogeneity across countries and time periods," DELTA Working Papers 2002-03, DELTA (Ecole normale supérieure).
  16. 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.
  17. Stefan Dercon, 2009. "Rural Poverty: Old Challenges in New Contexts," World Bank Research Observer, World Bank Group, vol. 24(1), pages 1-28, April.
  18. Gustavo Anríquez & Ramón López, 2007. "Agricultural growth and poverty in an archetypical middle income country: Chile 1987-2003," Agricultural Economics, International Association of Agricultural Economists, vol. 36(2), pages 191-202, 03.
  19. Martin, Will & Mitra, Devashish, 2001. "Productivity Growth and Convergence in Agriculture versus Manufacturing," Economic Development and Cultural Change, University of Chicago Press, vol. 49(2), pages 403-22, January.
  20. Mergenthaler, Marcus & Weinberger, Katinka & Qaim, Matin, 2009. "The food system transformation in developing countries: A disaggregate demand analysis for fruits and vegetables in Vietnam," Food Policy, Elsevier, vol. 34(5), pages 426-436, October.
  21. Ravallion, Martin, 2001. "Growth, Inequality and Poverty: Looking Beyond Averages," World Development, Elsevier, vol. 29(11), pages 1803-1815, November.
  22. Windmeijer, Frank, 2005. "A finite sample correction for the variance of linear efficient two-step GMM estimators," Journal of Econometrics, Elsevier, vol. 126(1), pages 25-51, May.
  23. Ravallion, Martin & Chen, Shaohua, 2007. "China's (uneven) progress against poverty," Journal of Development Economics, Elsevier, vol. 82(1), pages 1-42, January.
  24. Krueger, Anne O & Schiff, Maurice & Valdes, Alberto, 1988. "Agricultural Incentives in Developing Countries: Measuring the Effect of Sectoral and Economywide Policies," World Bank Economic Review, World Bank Group, vol. 2(3), pages 255-71, September.
  25. Szirmai, Adam, 2009. "Industrialisation as an engine of growth in developing countries," MERIT Working Papers 010, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  26. Lant Pritchett, 2006. "Who is Not Poor? Dreaming of a World Truly Free of Poverty," World Bank Research Observer, World Bank Group, vol. 21(1), pages 1-23.
  27. David de Ferranti & Guillermo E. Perry & William Foster & Daniel Lederman & Alberto Valdés, 2005. "Beyond the City: The Rural Contribution to Development," World Bank Publications, The World Bank, number 7328, March.
  28. Stephan Klasen & Mark Misselhorn, 2008. "Determinants of the Growth Semi-Elasticity of Poverty Reduction," Ibero America Institute for Econ. Research (IAI) Discussion Papers 176, Ibero-America Institute for Economic Research.
  29. Kraay, Aart, 2006. "When is growth pro-poor? Evidence from a panel of countries," Journal of Development Economics, Elsevier, vol. 80(1), pages 198-227, June.
  30. Christiaensen, Luc & Pan,Lei & Wang, Sangui, 2010. "Drivers of Poverty Reduction in Lagging Regions: Evidence from Rural Western China," Working Paper Series UNU-WIDER Working Paper W, World Institute for Development Economic Research (UNU-WIDER).
  31. Bravo-Ortega, Claudio & Lederman, Daniel, 2005. "Agriculture and national welfare around the world: causality and international heterogeneity since 1960," Policy Research Working Paper Series 3499, The World Bank.
  32. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
  33. Paul Dorosh & Steven Haggblade, 2003. "Growth Linkages, Price Effects and Income Distribution in Sub-Saharan Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 12(2), pages 207-235, June.
  34. Yujiro HAYAMI & Masao KIKUCHI & Esther B. MARCIANO, 1998. "Structure Of Rural-Based Industrialization: Metal Craft Manufacturing On The Outskirts Of Greater Manila, The Philippines," The Developing Economies, Institute of Developing Economies, vol. 36(2), pages 132-154, 06.
  35. 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.
  36. Suryahadi, Asep & Suryadarma, Daniel & Sumarto, Sudarno, 2009. "The effects of location and sectoral components of economic growth on poverty: Evidence from Indonesia," Journal of Development Economics, Elsevier, vol. 89(1), pages 109-117, May.
  37. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-38, July.
  38. Richard Tiffin & Xavier Irz, 2006. "Is agriculture the engine of growth?," Agricultural Economics, International Association of Agricultural Economists, vol. 35(1), pages 79-89, 07.
  39. Sachs, Jeffrey D. & Warner, Andrew M., 2001. "The curse of natural resources," European Economic Review, Elsevier, vol. 45(4-6), pages 827-838, May.
  40. David Roodman, 2009. "A Note on the Theme of Too Many Instruments," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(1), pages 135-158, 02.
  41. Bernard, Andrew B & Jones, Charles I, 1996. "Productivity across Industries and Countries: Time Series Theory and Evidence," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 135-46, February.
  42. John Humphrey & Neil McCulloch & Masako Ota, 2004. "The impact of European market changes on employment in the Kenyan horticulture sector," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(1), pages 63-80.
  43. Adams, Richard Jr., 2004. "Economic Growth, Inequality and Poverty: Estimating the Growth Elasticity of Poverty," World Development, Elsevier, vol. 32(12), pages 1989-2014, December.
  44. Haggblade, Steven & Hazell, Peter B. R. & Reardon, Thomas, 2009. "Transforming the rural nonfarm economy: Opportunities and threats in the developing world," Issue briefs 58, International Food Policy Research Institute (IFPRI).
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:unu:wpaper:wp2010-36. 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: (Bruck Tadesse)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.