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Income dynamics and pathways out of rural poverty in Bangladesh, 1988–2004

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  • Nigar Nargis
  • Mahabub Hossain

Abstract

Bangladesh has made considerable progress in alleviating poverty in the recent past. Using data from a nationally representative longitudinal survey of rural households in Bangladesh conducted in three waves in 1988, 2000, and 2004, this article relates the dynamics of rural poverty reduction to the structural shift in income generation mechanism from farm to nonfarm activities, changing household factor endowments, and the adoption of improved agricultural technologies over time.1 The findings show that the occupational shift from the farm to the nonfarm sector, such as trade, business, and services, as well as the expansion of cultivated areas through tenancy, enhance income growth. Geographic mobility, overseas migration in particular, makes a significant contribution to income growth as well. The reduction in poverty appears to be vitally dependent on the enhancement of the endowment of human and physical capital that augments the poor households' capability to better exploit income‐generating opportunities and place the households on a sustainable route out of poverty.

Suggested Citation

  • Nigar Nargis & Mahabub Hossain, 2006. "Income dynamics and pathways out of rural poverty in Bangladesh, 1988–2004," Agricultural Economics, International Association of Agricultural Economists, vol. 35(s3), pages 425-435, November.
    • Handle: RePEc:bla:agecon:v:35:y:2006:i:s3:p:425-435
    DOI: 10.1111/j.1574-0862.2006.00188.x
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    1. Ahmed, Raisuddin & Hossain, Mahabub, 1990. "Developmental impact of rural infrastructure in Bangladesh:," Research reports 83, International Food Policy Research Institute (IFPRI).
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    1. Md. Alamgir Hossain & Mohammad Abdul Malek & Zhengfei Yu, 2023. "Impact of Rural Credit on Household Welfare: Evidence from a Long-Term Panel in Bangladesh," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 40(02), pages 363-397, September.
    2. Bezu, Sosina & Barrett, Christopher B. & Holden, Stein T., 2012. "Does the Nonfarm Economy Offer Pathways for Upward Mobility? Evidence from a Panel Data Study in Ethiopia," World Development, Elsevier, vol. 40(8), pages 1634-1646.
    3. Md Zabid Iqbal, 2019. "The Effects of a Large Rice Price Increase on Household Welfare and Poverty in Rural Bangladesh," Economics Bulletin, AccessEcon, vol. 39(1), pages 295-309.
    4. Sosina Bezu & Christopher Barrett, 2012. "Employment Dynamics in the Rural Nonfarm Sector in Ethiopia: Do the Poor Have Time on Their Side?," Journal of Development Studies, Taylor & Francis Journals, vol. 48(9), pages 1223-1240, September.
    5. Malek, Mohammad Abdul & Kikkawa, Aiko & Azad, Abul Kalam & Sawada, Yasuyuki, 2022. "Rural Development in Bangladesh Over Four Decades: Findings from Mahabub Hossain Panel Data and the Way Forward," ADBI Working Papers 1350, Asian Development Bank Institute.
    6. Ahmed, M. & Gautam, M. & Sen, B., 2018. "Waves of Change: Understanding Ascent, Descent and Persistence of Poverty in Rural Bangladesh," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277340, International Association of Agricultural Economists.
    7. Akhter U. Ahmed & Salauddin Tauseef, 2022. "Climbing up the Ladder and Watching Out for the Fall: Poverty Dynamics in Rural Bangladesh," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(1), pages 309-340, February.
    8. Asif Ehsan, Syed Mortuza & AKTER, SHAHARIA, 2020. "Vulnerability Resilience and Female Labor Force Participation: Evidence from Shocks on Rural Households in Bangladesh," MPRA Paper 118270, University Library of Munich, Germany.
    9. Davis, Benjamin & Winters, Paul & Carletto, Gero & Covarrubias, Katia & Quiñones, Esteban J. & Zezza, Alberto & Stamoulis, Kostas & Azzarri, Carlo & DiGiuseppe, Stefania, 2010. "A Cross-Country Comparison of Rural Income Generating Activities," World Development, Elsevier, vol. 38(1), pages 48-63, January.
    10. Joseph V. Balagtas & Humnath Bhandari & Ellanie R. Cabrera & Samarendu Mohanty & Mahabub Hossain, 2014. "Did the commodity price spike increase rural poverty? Evidence from a long-run panel in Bangladesh," Agricultural Economics, International Association of Agricultural Economists, vol. 45(3), pages 303-312, May.
    11. Rishi Kumar, 2022. "Household poverty dynamics in tribal Madhya Pradesh, India: A case study of 54 villages," Poverty & Public Policy, John Wiley & Sons, vol. 14(2), pages 184-203, June.
    12. Al-Amin, A.K.M. Abdullah & Hossain, M.J., 2019. "Impact of non-farm income on welfare in rural Bangladesh: Multilevel mixed-effects regression approach," World Development Perspectives, Elsevier, vol. 13(C), pages 95-102.
    13. M. J. Hossain & A. Debnath & M. F. Imam & M. A. Islam & F. Elahi, 2019. "Effects Of Non-Farm Income On Poverty And Inequality In Rural Bangladesh," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 39(1&2), December.
    14. Islam, Asadul & Nguyen, Chau & Smyth, Russell, 2015. "Does microfinance change informal lending in village economies? Evidence from Bangladesh," Journal of Banking & Finance, Elsevier, vol. 50(C), pages 141-156.
    15. William J. Burke & T. S. Jayne, 2014. "Smallholder land ownership in Kenya: distribution between households and through time," Agricultural Economics, International Association of Agricultural Economists, vol. 45(2), pages 185-198, March.

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