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

Author

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  • Katsushi S. Imai

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan and School of Social Sciences, University of Manchester, UK)

  • Wenya Cheng

    (School of Social Sciences, University of Manchester, UK)

  • Raghav Gaiha

    (Faculty of Management Studies, University of Delhi, India and Harvard School of Public Health, Harvard University Boston, USA)

Abstract

Drawing upon cross-country panel data for developing countries, the present study examines the role of agricultural growth in reducing inequality and poverty by modelling the dynamic linkage between agricultural and non-agricultural sectors. For this purpose, we have compared the role of agricultural growth and that of non-agricultural growth and have found that agricultural growth is more important in reducing poverty, while the negative effect of agricultural growth on inequality is found in a few models where specific definitions of inequality are adopted. Our analysis generally reinforces the case for revival of agriculture in the post-2015 discourse, contrary to the much emphasised roles of rural-urban migration and urbanisation as main drivers of growth and elimination of extreme poverty.

Suggested Citation

  • Katsushi S. Imai & Wenya Cheng & Raghav Gaiha, 2016. "Dynamic and Long-term Linkages among Agricultural and Non-Agricultural Growth, Inequality and Poverty in Developing Countries," Discussion Paper Series DP2016-27, Research Institute for Economics & Business Administration, Kobe University.
    • Handle: RePEc:kob:dpaper:dp2016-27
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    References listed on IDEAS

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    Cited by:

    1. Anriquez, Gustavo & Quiñonez, Fabrizio, 2021. "Sowing the Seeds of Hunger. When Agriculture Fails to Deliver Its Pro-Poor Promise, Paraguay 2001 - 2017," 2021 Conference, August 17-31, 2021, Virtual 315905, International Association of Agricultural Economists.
    2. Dhahri, Sabrine & Omri, Anis, 2020. "Foreign capital towards SDGs 1 & 2—Ending Poverty and hunger: The role of agricultural production," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 208-221.
    3. Katsushi S. Imai, 2017. "Roles of Agricultural Transformation in Achieving Sustainable Development Goals on Poverty, Hunger, Productivity, and Inequality," Discussion Paper Series DP2017-26, Research Institute for Economics & Business Administration, Kobe University.
    4. Kulkarni, Varsha S. & Gaiha, Raghav, 2021. "Beyond Piketty: A new perspective on poverty and inequality in India," Journal of Policy Modeling, Elsevier, vol. 43(2), pages 317-336.
    5. Imai, S.K. & Malaeb, B., 2018. "IFAD RESEARCH SERIES 27 - Asia’s rural-urban disparity in the context of growing inequality," IFAD Research Series 280076, International Fund for Agricultural Development (IFAD).
    6. Arbianti, Arbianti & Rahayu, Endang Siti & Sutrisno, Joko, 2023. "Multidimensional poverty of cassava farm households in Wonogiri Regency, Indonesia," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(1), March.
    7. Imai, K.S. & Gaiha, R. & Garbero, A., 2018. "IFAD RESEARCH SERIES 22 - Poverty reduction during the rural-urban transformation: rural development is still more important than urbanization," IFAD Research Series 280071, International Fund for Agricultural Development (IFAD).
    8. Minghui Zhang & Weiqi Xia, 2022. "Research on the Law of China’s Rural Land Institutional Changes: An Analytical Framework of Economic Efficiency and Distributive Equity," Land, MDPI, vol. 11(12), pages 1-15, December.

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    More about this item

    Keywords

    Inequality; Poverty; Growth; Agriculture; Non-agriculture; MDG; SDG;
    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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