The Role of Agriculture in Poverty Reduction : An Empirical Perspective

The relative contribution of a sector to poverty reduction is shown to depend on its direct and indirect growth effects as well as its participation effect. The paper assesses how these effects compare between agriculture and non-agriculture by reviewing the literature and by analyzing cross-country...

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Main Authors: Christiaensen, Luc, Demery, Lionel, Kuhl, Jesper
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2012
Subjects:
GDP
Online Access:http://documents.worldbank.org/curated/en/2006/09/7071126/role-agriculture-poverty-reduction-empirical-perspective
http://hdl.handle.net/10986/9306
id okr-10986-9306
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCESS TO HEALTH SERVICES
AGRICULTURAL DEVELOPMENT
AGRICULTURAL GROWTH
AGRICULTURAL INCOMES
AGRICULTURAL OUTPUT
AGRICULTURAL PRODUCTION
AGRICULTURAL PRODUCTIVITY
AGRICULTURAL PRODUCTIVITY GROWTH
AGRICULTURAL PRODUCTS
AGRICULTURAL SECTOR
AGRICULTURAL SECTORS
AGRICULTURAL TECHNOLOGY
ANNUAL GROWTH
ANNUAL GROWTH RATE
AVERAGE INCOMES
CHANGES IN POVERTY
CLASSICAL ECONOMISTS
CLIMATE CHANGE
COMMERCIAL FARMERS
COUNTRY REGRESSIONS
COUNTRY SPECIFIC
CROSS COUNTRY
CROSS COUNTRY DATA
DEMAND FOR FOOD
DEVELOPING COUNTRIES
DEVELOPING WORLD
DEVELOPMENT ECONOMICS
DUAL ECONOMY
DYNAMIC PANEL
EAST EUROPE
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC SYSTEMS
ECONOMICS LITERATURE
EMPIRICAL APPLICATION
EMPIRICAL EVIDENCE
ERROR TERM
ESTIMATION TECHNIQUES
EXTENSION
FARM EMPLOYMENT
FARM INCOME
FARM SECTOR
FIXED PRICES
FOOD CROPS
FOOD MARKETS
FOOD PRICES
GDP
GDP PER CAPITA
GROSS DOMESTIC PRODUCT
GROWTH EFFECT
GROWTH ELASTICITY
GROWTH PERFORMANCE
GROWTH POTENTIAL
GROWTH PROCESS
GROWTH RATE
GROWTH RATES
HEADCOUNT POVERTY
HOUSEHOLD INCOME
HOUSEHOLD SURVEYS
HUMAN CAPITAL
IMPACT ON POVERTY
IMPACT ON POVERTY REDUCTION
INCOME
INCOME CHANGE
INCOME GAINS
INCOME GROWTH
INCOME INEQUALITY
INDUSTRIAL SECTOR
INDUSTRIALIZATION
INDUSTRIALIZED COUNTRIES
INEQUALITY
IRRIGATION
LAGGED DEPENDENT
LAGGED LEVELS
LAGGED VALUES
LAND PRODUCTIVITY
LATIN AMERICAN
LONG RUN
LOW-INCOME COUNTRIES
MARGINAL PRODUCTS
MICRO DATA
MULTIPLIER EFFECTS
MULTIPLIERS
NATIONAL ACCOUNTS
NEW TECHNOLOGIES
POLICY MAKERS
POLICY REFORMS
POLICY RESEARCH
POOR
POOR COUNTRIES
POOR PEOPLE
POOR SMALLHOLDER
POVERTY DATA
POVERTY REDUCING
POVERTY REDUCTION
POVERTY REDUCTION IMPACT
POVERTY REDUCTION STRATEGIES
PRODUCTION FUNCTION
PRODUCTION PROCESS
PRODUCTIVITY INCREASES
REAL PRODUCT WAGE
REDUCING POVERTY
RELATIVE CONTRIBUTION
RELATIVE ROLE
RURAL
RURAL AREAS
RURAL ECONOMY
RURAL HEADCOUNT
RURAL HOUSEHOLDS
RURAL POPULATION
RURAL SECTOR
SECTORAL COMPOSITION
SERIAL CORRELATION
SMALLHOLDER AGRICULTURE
SMALLHOLDER FARMERS
SOIL DEGRADATION
SOILS
STANDARD DEVIATION
STRUCTURAL CHANGE
STRUCTURAL TRANSFORMATION
SUB-SAHARAN AFRICA
SUBSISTENCE
SUSTAINABLE ECONOMIC DEVELOPMENT
TOTAL FACTOR PRODUCTIVITY
TOTAL FACTOR PRODUCTIVITY GROWTH
TOTAL OUTPUT
TOTAL POVERTY
UNEQUAL DISTRIBUTION
URBAN AREAS
WAGE EARNERS
WAGES
spellingShingle ACCESS TO HEALTH SERVICES
AGRICULTURAL DEVELOPMENT
AGRICULTURAL GROWTH
AGRICULTURAL INCOMES
AGRICULTURAL OUTPUT
AGRICULTURAL PRODUCTION
AGRICULTURAL PRODUCTIVITY
AGRICULTURAL PRODUCTIVITY GROWTH
AGRICULTURAL PRODUCTS
AGRICULTURAL SECTOR
AGRICULTURAL SECTORS
AGRICULTURAL TECHNOLOGY
ANNUAL GROWTH
ANNUAL GROWTH RATE
AVERAGE INCOMES
CHANGES IN POVERTY
CLASSICAL ECONOMISTS
CLIMATE CHANGE
COMMERCIAL FARMERS
COUNTRY REGRESSIONS
COUNTRY SPECIFIC
CROSS COUNTRY
CROSS COUNTRY DATA
DEMAND FOR FOOD
DEVELOPING COUNTRIES
DEVELOPING WORLD
DEVELOPMENT ECONOMICS
DUAL ECONOMY
DYNAMIC PANEL
EAST EUROPE
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC SYSTEMS
ECONOMICS LITERATURE
EMPIRICAL APPLICATION
EMPIRICAL EVIDENCE
ERROR TERM
ESTIMATION TECHNIQUES
EXTENSION
FARM EMPLOYMENT
FARM INCOME
FARM SECTOR
FIXED PRICES
FOOD CROPS
FOOD MARKETS
FOOD PRICES
GDP
GDP PER CAPITA
GROSS DOMESTIC PRODUCT
GROWTH EFFECT
GROWTH ELASTICITY
GROWTH PERFORMANCE
GROWTH POTENTIAL
GROWTH PROCESS
GROWTH RATE
GROWTH RATES
HEADCOUNT POVERTY
HOUSEHOLD INCOME
HOUSEHOLD SURVEYS
HUMAN CAPITAL
IMPACT ON POVERTY
IMPACT ON POVERTY REDUCTION
INCOME
INCOME CHANGE
INCOME GAINS
INCOME GROWTH
INCOME INEQUALITY
INDUSTRIAL SECTOR
INDUSTRIALIZATION
INDUSTRIALIZED COUNTRIES
INEQUALITY
IRRIGATION
LAGGED DEPENDENT
LAGGED LEVELS
LAGGED VALUES
LAND PRODUCTIVITY
LATIN AMERICAN
LONG RUN
LOW-INCOME COUNTRIES
MARGINAL PRODUCTS
MICRO DATA
MULTIPLIER EFFECTS
MULTIPLIERS
NATIONAL ACCOUNTS
NEW TECHNOLOGIES
POLICY MAKERS
POLICY REFORMS
POLICY RESEARCH
POOR
POOR COUNTRIES
POOR PEOPLE
POOR SMALLHOLDER
POVERTY DATA
POVERTY REDUCING
POVERTY REDUCTION
POVERTY REDUCTION IMPACT
POVERTY REDUCTION STRATEGIES
PRODUCTION FUNCTION
PRODUCTION PROCESS
PRODUCTIVITY INCREASES
REAL PRODUCT WAGE
REDUCING POVERTY
RELATIVE CONTRIBUTION
RELATIVE ROLE
RURAL
RURAL AREAS
RURAL ECONOMY
RURAL HEADCOUNT
RURAL HOUSEHOLDS
RURAL POPULATION
RURAL SECTOR
SECTORAL COMPOSITION
SERIAL CORRELATION
SMALLHOLDER AGRICULTURE
SMALLHOLDER FARMERS
SOIL DEGRADATION
SOILS
STANDARD DEVIATION
STRUCTURAL CHANGE
STRUCTURAL TRANSFORMATION
SUB-SAHARAN AFRICA
SUBSISTENCE
SUSTAINABLE ECONOMIC DEVELOPMENT
TOTAL FACTOR PRODUCTIVITY
TOTAL FACTOR PRODUCTIVITY GROWTH
TOTAL OUTPUT
TOTAL POVERTY
UNEQUAL DISTRIBUTION
URBAN AREAS
WAGE EARNERS
WAGES
Christiaensen, Luc
Demery, Lionel
Kuhl, Jesper
The Role of Agriculture in Poverty Reduction : An Empirical Perspective
relation Policy Research Working Paper; No. 4013
description The relative contribution of a sector to poverty reduction is shown to depend on its direct and indirect growth effects as well as its participation effect. The paper assesses how these effects compare between agriculture and non-agriculture by reviewing the literature and by analyzing cross-country national accounts and poverty data from household surveys. Special attention is given to Sub-Saharan Africa. While the direct growth effect of agriculture on poverty reduction is likely to be smaller than that of non-agriculture (though not because of inherently inferior productivity growth), the indirect growth effect of agriculture (through its linkages with nonagriculture) appears substantial and at least as large as the reverse feedback effect. The poor participate much more in growth in the agricultural sector, especially in low-income countries, resulting in much larger poverty reduction impact. Together, these findings support the overall premise that enhancing agricultural productivity is the critical entry-point in designing effective poverty reduction strategies, including in Sub-Saharan Africa. Yet, to maximize the poverty reducing effects, the right agricultural technology and investments must be pursued, underscoring the need for much more country specific analysis of the structure and institutional organization of the rural economy in designing poverty reduction strategies.
format Publications & Research :: Policy Research Working Paper
author Christiaensen, Luc
Demery, Lionel
Kuhl, Jesper
author_facet Christiaensen, Luc
Demery, Lionel
Kuhl, Jesper
author_sort Christiaensen, Luc
title The Role of Agriculture in Poverty Reduction : An Empirical Perspective
title_short The Role of Agriculture in Poverty Reduction : An Empirical Perspective
title_full The Role of Agriculture in Poverty Reduction : An Empirical Perspective
title_fullStr The Role of Agriculture in Poverty Reduction : An Empirical Perspective
title_full_unstemmed The Role of Agriculture in Poverty Reduction : An Empirical Perspective
title_sort role of agriculture in poverty reduction : an empirical perspective
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2006/09/7071126/role-agriculture-poverty-reduction-empirical-perspective
http://hdl.handle.net/10986/9306
_version_ 1764406580384628736
spelling okr-10986-93062021-04-23T14:02:41Z The Role of Agriculture in Poverty Reduction : An Empirical Perspective Christiaensen, Luc Demery, Lionel Kuhl, Jesper ACCESS TO HEALTH SERVICES AGRICULTURAL DEVELOPMENT AGRICULTURAL GROWTH AGRICULTURAL INCOMES AGRICULTURAL OUTPUT AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTIVITY AGRICULTURAL PRODUCTIVITY GROWTH AGRICULTURAL PRODUCTS AGRICULTURAL SECTOR AGRICULTURAL SECTORS AGRICULTURAL TECHNOLOGY ANNUAL GROWTH ANNUAL GROWTH RATE AVERAGE INCOMES CHANGES IN POVERTY CLASSICAL ECONOMISTS CLIMATE CHANGE COMMERCIAL FARMERS COUNTRY REGRESSIONS COUNTRY SPECIFIC CROSS COUNTRY CROSS COUNTRY DATA DEMAND FOR FOOD DEVELOPING COUNTRIES DEVELOPING WORLD DEVELOPMENT ECONOMICS DUAL ECONOMY DYNAMIC PANEL EAST EUROPE ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC SYSTEMS ECONOMICS LITERATURE EMPIRICAL APPLICATION EMPIRICAL EVIDENCE ERROR TERM ESTIMATION TECHNIQUES EXTENSION FARM EMPLOYMENT FARM INCOME FARM SECTOR FIXED PRICES FOOD CROPS FOOD MARKETS FOOD PRICES GDP GDP PER CAPITA GROSS DOMESTIC PRODUCT GROWTH EFFECT GROWTH ELASTICITY GROWTH PERFORMANCE GROWTH POTENTIAL GROWTH PROCESS GROWTH RATE GROWTH RATES HEADCOUNT POVERTY HOUSEHOLD INCOME HOUSEHOLD SURVEYS HUMAN CAPITAL IMPACT ON POVERTY IMPACT ON POVERTY REDUCTION INCOME INCOME CHANGE INCOME GAINS INCOME GROWTH INCOME INEQUALITY INDUSTRIAL SECTOR INDUSTRIALIZATION INDUSTRIALIZED COUNTRIES INEQUALITY IRRIGATION LAGGED DEPENDENT LAGGED LEVELS LAGGED VALUES LAND PRODUCTIVITY LATIN AMERICAN LONG RUN LOW-INCOME COUNTRIES MARGINAL PRODUCTS MICRO DATA MULTIPLIER EFFECTS MULTIPLIERS NATIONAL ACCOUNTS NEW TECHNOLOGIES POLICY MAKERS POLICY REFORMS POLICY RESEARCH POOR POOR COUNTRIES POOR PEOPLE POOR SMALLHOLDER POVERTY DATA POVERTY REDUCING POVERTY REDUCTION POVERTY REDUCTION IMPACT POVERTY REDUCTION STRATEGIES PRODUCTION FUNCTION PRODUCTION PROCESS PRODUCTIVITY INCREASES REAL PRODUCT WAGE REDUCING POVERTY RELATIVE CONTRIBUTION RELATIVE ROLE RURAL RURAL AREAS RURAL ECONOMY RURAL HEADCOUNT RURAL HOUSEHOLDS RURAL POPULATION RURAL SECTOR SECTORAL COMPOSITION SERIAL CORRELATION SMALLHOLDER AGRICULTURE SMALLHOLDER FARMERS SOIL DEGRADATION SOILS STANDARD DEVIATION STRUCTURAL CHANGE STRUCTURAL TRANSFORMATION SUB-SAHARAN AFRICA SUBSISTENCE SUSTAINABLE ECONOMIC DEVELOPMENT TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TOTAL OUTPUT TOTAL POVERTY UNEQUAL DISTRIBUTION URBAN AREAS WAGE EARNERS WAGES The relative contribution of a sector to poverty reduction is shown to depend on its direct and indirect growth effects as well as its participation effect. The paper assesses how these effects compare between agriculture and non-agriculture by reviewing the literature and by analyzing cross-country national accounts and poverty data from household surveys. Special attention is given to Sub-Saharan Africa. While the direct growth effect of agriculture on poverty reduction is likely to be smaller than that of non-agriculture (though not because of inherently inferior productivity growth), the indirect growth effect of agriculture (through its linkages with nonagriculture) appears substantial and at least as large as the reverse feedback effect. The poor participate much more in growth in the agricultural sector, especially in low-income countries, resulting in much larger poverty reduction impact. Together, these findings support the overall premise that enhancing agricultural productivity is the critical entry-point in designing effective poverty reduction strategies, including in Sub-Saharan Africa. Yet, to maximize the poverty reducing effects, the right agricultural technology and investments must be pursued, underscoring the need for much more country specific analysis of the structure and institutional organization of the rural economy in designing poverty reduction strategies. 2012-06-27T14:06:34Z 2012-06-27T14:06:34Z 2006-09 http://documents.worldbank.org/curated/en/2006/09/7071126/role-agriculture-poverty-reduction-empirical-perspective http://hdl.handle.net/10986/9306 English en_US Policy Research Working Paper; No. 4013 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research