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Dynamic and Long-term Linkages among Growth, Inequality and Poverty in Developing Countries

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  • Katsushi S. Imai

    (School of Social Sciences, University of Manchester (UK) and RIEB, Kobe University (Japan))

  • Raghav Gaiha

Abstract

Drawing upon cross-country panel data for developing countries, the present study sheds new empirical light on dynamic and long-term linkages among growth in agricultural and non-agricultural sectors, inequality and poverty. Agricultural growth is found to be the most important factor in reducing inequality and poverty. The role of agricultural growth in reducing inequality is undermined by ethnic fractionalisation which tends to make inequality more persistent. Our analysis points to a drastic shift away from rural-urban migration and urbanisation as main drivers of growth and elimination of extreme poverty, and towards revival of agriculture in the post-2015 policy discourse.

Suggested Citation

  • Katsushi S. Imai & Raghav Gaiha, 2014. "Dynamic and Long-term Linkages among Growth, Inequality and Poverty in Developing Countries," Discussion Paper Series DP2014-33, Research Institute for Economics & Business Administration, Kobe University.
    • Handle: RePEc:kob:dpaper:dp2014-33
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    Cited by:

    1. repec:rac:ecchap:2017-05 is not listed on IDEAS
    2. Jing You & Katsushi S. Imai & Raghav Gaiha, 2014. "Decoding the Growth-Nutrition Nexus in China: Inequality, Uncertainty and Food Insecurity," Economics Discussion Paper Series 1413, Economics, The University of Manchester.
    3. Odusola, Ayodele, 2017. "Agriculture, Rural Poverty and Income Inequality in sub-Saharan Africa," UNDP Africa Economists Working Papers 266998, United Nations Development Programme (UNDP).
    4. Katsushi S. Imai & Raghav Gaiha & Constanza Di NUCCI, 2014. "Agricultural Employment, Wages and Poverty in Developing Countries," Discussion Paper Series DP2014-32, Research Institute for Economics & Business Administration, Kobe University.
    5. Chancel, Lucas & Cogneau, Denis & Gethin, Amory & Myczkowski, Alix & Robilliard, Anne-Sophie, 2023. "Income inequality in Africa, 1990–2019: Measurement, patterns, determinants," World Development, Elsevier, vol. 163(C).
    6. Lucas Chancel & Denis Cogneau & Amory Gethin & Alix Myczkowski, 2019. "How large are African inequalities? Towards Distributional National Accounts in Africa, 1990 - 2017," World Inequality Lab Working Papers hal-02876986, HAL.
    7. Imai, Katsushi S. & Gaiha, Raghav & Garbero, Alessandra, 2017. "Poverty reduction during the rural–urban transformation: Rural development is still more important than urbanisation," Journal of Policy Modeling, Elsevier, vol. 39(6), pages 963-982.
    8. Lucas Chancel & Denis Cogneau & Amory Gethin & Alix Myczkowski, 2019. "How large are African inequalities? Towards Distributional National Accounts in Africa, 1990 - 2017," World Inequality Lab Working Papers hal-02876986, HAL.
    9. Katsushi S. Imai & Gordon Abekah-Nkrumah & Purnima Purohit, 2014. "Is Rural Contribution to Aggregate Poverty Reduction Substantial? New Evidence," Global Development Institute Working Paper Series 20814, GDI, The University of Manchester.
    10. UNDP Regional Bureau for Africa & Ayodele Odusola, "undated". "Agriculture, Rural Poverty and Income Inequality in sub-Saharan Africa," UNDP Africa Policy Notes 2017-05, United Nations Development Programme, Regional Bureau for Africa.
    11. Katsushi S. Imai & Md. Faruq Hasan & Eleonora Porreca, 2015. "Do Agricultural Extension Programmes Reduce Poverty and Vulnerability? Farm Size, Agricultural Productivity and Poverty in Uganda," Discussion Paper Series DP2015-06, Research Institute for Economics & Business Administration, Kobe University.
    12. Katsushi S. Imai & Bilal Maleb, 2015. "Rural and Urban Poverty Estimates for Developing Countries: Methodologies," Discussion Paper Series DP2015-07, Research Institute for Economics & Business Administration, Kobe University.

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    More about this item

    Keywords

    Inequality; Poverty; Growth; Agriculture; Non-agriculture; MDG;
    All these keywords.

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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