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Agriculture, Markets, and Poverty: A Comparative Analysis of Lao PDR and Cambodia

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  • Gaiha, Raghav
  • Azam, Md Shafiul

Abstract

Lao PDR and Cambodia have been transitioning to a market-oriented policy regime. Both are agrarian economies with agriculture contributing about one-third of the gross domestic product (GDP). This study assessed their prospects of achieving the first Millennium Development Goal (MDG 1, extreme poverty eradication) and the centrality of agricultural growth in achieving this goal. As these are macro relationships, richer insights on determinants of poverty were obtained by detailed analyses of recent household surveys in these countries. Some of these insights relate to access to markets, returns to crops, education, land size, non-farm activities, ethnic affiliation, and rural infrastructure, with unavoidable variation due to differences in the coverage of the household surveys used. Another major theme studied for Cambodia is integration of farmers (especially smallholders) into markets, focusing on barriers between large and smallholders (e.g., transaction costs). An accelerated transition to a more market-oriented policy regime may promote not just a more efficient agriculture but also a more equitable outcome.

Suggested Citation

  • Gaiha, Raghav & Azam, Md Shafiul, 2012. "Agriculture, Markets, and Poverty: A Comparative Analysis of Lao PDR and Cambodia," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 9(1), pages 1-15, June.
    • Handle: RePEc:ags:phajad:204262
    DOI: 10.22004/ag.econ.204262
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    1. Katsushi S. Imai & Raghav Gaiha & Ganesh Thapa, 2011. "Role of Agriculture in Achieving MDG 1 in Asia and the Pacific Region," Discussion Paper Series DP2011-01, Research Institute for Economics & Business Administration, Kobe University.
    2. Heltberg, R. & Tarp, F., 2002. "Agricultural supply response and poverty in Mozambique," Food Policy, Elsevier, vol. 27(2), pages 103-124, April.
    3. Samuel Annim & Raghav Gaiha, 2012. "Crop returns, prices, credit and poverty in Lao-PDR," Global Development Institute Working Paper Series 17012, GDI, The University of Manchester.
    4. Raghav Gaiha & Samuel Annim, 2010. "Agriculture, GDP and Prospects of MDG 1 in Lao PDR," Economics Discussion Paper Series 1012, Economics, The University of Manchester.
    5. Timothy Besley & Robin Burgess, 2003. "Halving Global Poverty," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 3-22, Summer.
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