Dynamic and long-term linkages among agricultural and non-agricultural growth, inequality and poverty in developing countries

Katsushi Imai, Wenya Cheng and Raghav Gaiha

International Review of Applied Economics, 2017, vol. 31, issue 3, 318-338

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 roles of agricultural and 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 cases where specific definitions of inequality are adopted. Our analysis generally reinforces the case for revival of agriculture in the post-2015 discourse, contrary to much-emphasised roles of rural–urban migration and urbanisation as main drivers of growth and elimination of extreme poverty.

Date: 2017
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Working Paper: Dynamic and Long-term Linkages among Agricultural and Non-Agricultural Growth, Inequality and Poverty in Developing Countries (2016)
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DOI: 10.1080/02692171.2016.1249833

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