IDEAS home Printed from https://ideas.repec.org/p/zbw/gdec06/4752.html
   My bibliography  Save this paper

The Pathways out of Poverty in Rural Indonesia: an empirical assessment

Author

Listed:
  • Timmer, Peter
  • Weisbrod, Julian
  • McCulloch, Neil

Abstract

Since most poor live in rural areas, primarily engaged in low productivity farm activity, the pathway out of poverty must be strongly connected to productivity increases, whether they are realised in farming, rural non-farm enterprises or via urban migration. By utilizing the IFLS panel dataset for 1993 and 2000 from Indonesia, this paper shows, using empirical techniques, which pathways out of poverty were most successful in Indonesia?s past. Our findings suggest that the increased engagement of rural farmers in rural non-farm enterprises is a key way to alleviate rural poverty.

Suggested Citation

  • Timmer, Peter & Weisbrod, Julian & McCulloch, Neil, 2006. "The Pathways out of Poverty in Rural Indonesia: an empirical assessment," Proceedings of the German Development Economics Conference, Berlin 2006 29, Verein für Socialpolitik, Research Committee Development Economics.
    • Handle: RePEc:zbw:gdec06:4752
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/19854/1/Weisbrod.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Angus Maddison & D. S. Prasada & William Shepherd (ed.), 2002. "The Asian Economies in the Twentieth Century," Books, Edward Elgar Publishing, number 1721.
    3. Kravis, Irving B, 1970. "Trade as a Handmaiden of Growth: Similarities between the Nineteenth and Twentieth Centuries," Economic Journal, Royal Economic Society, vol. 80(323), pages 850-872, December.
    4. Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," The World Bank Economic Review, World Bank, vol. 10(1), pages 1-25, January.
    5. Foster, Andrew D & Rosenzweig, Mark R, 2004. "Agricultural Productivity Growth, Rural Economic Diversity, and Economic Reforms: India, 1970-2000," Economic Development and Cultural Change, University of Chicago Press, vol. 52(3), pages 509-542, April.
    6. Brandt Loren, 1993. "Interwar Japanese Agriculture: Revisionist Views on the Impact of the Colonial Rice Policy and the Labor-Surplus Hypothesis," Explorations in Economic History, Elsevier, vol. 30(3), pages 259-293, July.
    7. Mellor, John W. & Lele, Uma J., 1973. "Growth Linkages of the New Foodgrain Technologies," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 28(1), pages 1-22.
    8. Moon, Pal Yong, 1975. "The Evolution of Rice Policy in Korea," Food Research Institute Studies, Stanford University, Food Research Institute, vol. 14(4), pages 1-22.
    9. Timmer, C. Peter, 1995. "Getting agriculture moving: do markets provide the right signals?," Food Policy, Elsevier, vol. 20(5), pages 455-472, October.
    10. B. L. Gardner & G. C. Rausser (ed.), 2002. "Handbook of Agricultural Economics," Handbook of Agricultural Economics, Elsevier, edition 1, volume 2, number 4.
    11. Thirtle, Colin & Lin, Lin & Piesse, Jenifer, 2003. "The Impact of Research-Led Agricultural Productivity Growth on Poverty Reduction in Africa, Asia and Latin America," World Development, Elsevier, vol. 31(12), pages 1959-1975, December.
    12. Gaurav Datt & Martin Ravallion, 1998. "Farm productivity and rural poverty in India," Journal of Development Studies, Taylor & Francis Journals, vol. 34(4), pages 62-85.
    13. Gunther, Isabel & Grimm, Michael, 2007. "Measuring pro-poor growth when relative prices shift," Journal of Development Economics, Elsevier, vol. 82(1), pages 245-256, January.
    14. Johnson, D Gale, 1997. "Agriculture and the Wealth of Nations," American Economic Review, American Economic Association, vol. 87(2), pages 1-12, May.
    15. Ravallion, Martin & Chen, Shaohua, 2007. "China's (uneven) progress against poverty," Journal of Development Economics, Elsevier, vol. 82(1), pages 1-42, January.
    16. Gary Fields & Paul Cichello & Samuel Freije & Marta Menéndez & David Newhouse, 2003. "For Richer or for Poorer? Evidence from Indonesia, South Africa, Spain, and Venezuela," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 1(1), pages 67-99, April.
    17. Hollis Chenery† & T.N. Srinivasan (ed.), 1988. "Handbook of Development Economics," Handbook of Development Economics, Elsevier, edition 1, volume 1, number 1.
    18. Unknown, 1961. "The Role of Agriculture in Economic Development," International Journal of Agrarian Affairs, International Association of Agricultural Economists, vol. 3(2), pages 1-1, April.
    19. Robert P. King & Derek Byerlee, 1978. "Factor Intensities and Locational Linkages of Rural Consumption Patterns in Sierra Leone," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(2), pages 197-206.
    20. Dollar, David & Kraay, Aart, 2002. "Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
    21. repec:dau:papers:123456789/1560 is not listed on IDEAS
    22. Fan, Shenggen & Zhang, Linxiu & Zhang, Xiaobo, 2002. "Growth, inequality, and poverty in rural China: the role of public investments," Research reports 125, International Food Policy Research Institute (IFPRI).
    23. Mellor, John W & Johnston, Bruce F, 1984. "The World Food Equation: Interrelations among Development, Employment, and Food Consumption," Journal of Economic Literature, American Economic Association, vol. 22(2), pages 531-574, June.
    24. Hazell, P. B. R. & Roell, Ailsa, 1983. "Rural growth linkages: household expenditure patterns in Malaysia and Nigeria," Research reports 41, International Food Policy Research Institute (IFPRI).
    25. Ravallion, Martin & Huppi, Monika, 1991. "Measuring Changes in Poverty: A Methodological Case Study of Indonesia during an Adjustment Period," The World Bank Economic Review, World Bank, vol. 5(1), pages 57-82, January.
    26. 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.
    27. B. L. Gardner & G. C. Rausser (ed.), 2002. "Handbook of Agricultural Economics," Handbook of Agricultural Economics, Elsevier, edition 1, volume 2, number 3.
    28. Peter Timmer, C., 1988. "The agricultural transformation," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 8, pages 275-331, Elsevier.
    29. Lanjouw, Jean O. & Lanjouw, Peter, 2001. "The rural non-farm sector: issues and evidence from developing countries," Agricultural Economics, Blackwell, vol. 26(1), pages 1-23, October.
    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. World Bank, 2006. "Making the New Indonesia Work for the Poor," World Bank Publications - Reports 8172, The World Bank Group.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Timmer, C. Peter, 2008. "Agriculture and Pro-Poor Growth: An Asian Perspective," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 5(1), pages 1-29, June.
    2. Neil McCulloch & C. Peter Timmer & Julian Weisbrod, 2007. "Pathways Out of Poverty During an Economic Crisis: An Empirical Assessment of Rural Indonesia," Working Papers 115, Center for Global Development.
    3. Bezemer, Dirk & Headey, Derek, 2008. "Agriculture, Development, and Urban Bias," World Development, Elsevier, vol. 36(8), pages 1342-1364, August.
    4. Haggblade, Steven & Hazell, Peter & Reardon, Thomas, 2010. "The Rural Non-farm Economy: Prospects for Growth and Poverty Reduction," World Development, Elsevier, vol. 38(10), pages 1429-1441, October.
    5. Dethier, Jean-Jacques & Effenberger, Alexandra, 2012. "Agriculture and development: A brief review of the literature," Economic Systems, Elsevier, vol. 36(2), pages 175-205.
    6. Briones, Roehlano M., 2013. "Agriculture, Rural Employment, and Inclusive Growth," Discussion Papers DP 2013-39, Philippine Institute for Development Studies.
    7. Stefan Dercon & Douglas Gollin, 2014. "Agriculture in African Development: A Review of Theories and Strategies," CSAE Working Paper Series 2014-22, Centre for the Study of African Economies, University of Oxford.
    8. Oyakhilomen, Oyinbo & Zibah, Rekwot Grace, 2014. "Agricultural Production and Economic Growth in Nigeria: Implication for Rural Poverty Alleviation," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 53(3), pages 1-17, August.
    9. Christiaensen, Luc & Demery, Lionel & Kuhl, Jesper, 2006. "The role of agriculture in poverty reduction an empirical perspective," Policy Research Working Paper Series 4013, The World Bank.
    10. RAMDE, Fousseni & LO, Sérigne Bassirou, 2015. "Le Role Du Secteur Agricole Dans L’Economie Du Senegal [The Role Of The Agricultural Sector In The Senegal Economy]," MPRA Paper 81906, University Library of Munich, Germany.
    11. Ligon, Ethan & Sadoulet, Elisabeth, 2018. "Estimating the Relative Benefits of Agricultural Growth on the Distribution of Expenditures," World Development, Elsevier, vol. 109(C), pages 417-428.
    12. Shifa, Abdulaziz B., 2011. "Does agricultural growth have a causal effect on manufacturing growth?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116003, European Association of Agricultural Economists.
    13. Nadia Belhaj Hassine & Magda Kandil, 2009. "Trade liberalisation, agricultural productivity and poverty in the Mediterranean region," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(1), pages 1-29, March.
    14. Ozgur Kaya & Ilker Kaya, 2019. "Aid To Agriculture And Aggregate Welfare," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(02), pages 281-300, March.
    15. Llanto, Gilberto M., 2012. "The Impact of Infrastructure on Agricultural Productivity," Discussion Papers DP 2012-12, Philippine Institute for Development Studies.
    16. Peter Warr & Waleerat Suphannachart, 2021. "Agricultural Productivity Growth and Poverty Reduction: Evidence from Thailand," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 525-546, June.
    17. Andersson, Martin & Rohne Till, Emelie, 2017. "Between the Engine and the Fifth Wheel: An Analytical Survey of the Shifting Roles of Agriculture in Development Theory," Lund Papers in Economic History 163, Lund University, Department of Economic History.
    18. Randy Stringer & Prabhu Pingali, 2004. "Agriculture's Contributions to Economic and Social Development," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 1(1), pages 1-5.
    19. Diao, Xinshen & Hazell, Peter & Resnick, Danielle & Thurlow, James, 2006. "The role of agriculture in development: implications for Sub-Saharan Africa," DSGD discussion papers 29, International Food Policy Research Institute (IFPRI).

    More about this item

    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:zbw:gdec06:4752. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/vfselea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.