Rural income dynamics: Understanding poverty and inequality changes in rural Peru

Insa Flachsbarth, Jann Lay and Alberto Garrido

No 261109, 2017 International Congress, August 28-September 1, 2017, Parma, Italy from European Association of Agricultural Economists

Abstract: Rural Peru has shown poverty and inequality reductions, but some regions lag behind. We analyse the driving forces behind these trends by using microsimulation-based decompositions. We find that poverty and inequality reductions are mainly attributable to positive price effect in Peru’s agricultural sector, in part due to international market forces. Favourable developments have increased incomes also in non-agricultural sectors, and created new jobs, but were less pro-poor than is ideal. Further, shrinking farm sizes have hampered poverty reduction. Policies should target the participation in cash cropping and non-agricultural activities, especially if positive commodity price developments are only transitory.

Keywords: Agricultural and Food Policy; Community/Rural/Urban Development; International Development (search for similar items in EconPapers)
Pages: 14
Date: 2017-08-28
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae17:261109

DOI: 10.22004/ag.econ.261109

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