Sectoral Productivity Growth and Poverty Reduction: National and Global Impacts

Maros Ivanic and Will Martin

World Development, 2018, vol. 109, issue C, 429-439

Abstract: This paper examines the implications of productivity improvements in agriculture, industry, and services for global poverty. We find that, in poor countries, increases in agricultural productivity generally have a larger poverty-reduction effect than increases in industry or services. This differential declines as average incomes rise, partly because agriculture becomes smaller as a share of the economy, and partly because agricultural productivity growth becomes less effective in reducing poverty. The source of the poverty-reduction benefits from agricultural productivity growth changes as innovations are more widely adopted—moving from increases in producer returns to reductions in consumer prices.

Keywords: total factor productivity; poverty; decomposition; sectoral growth; transformation (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (54)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:109:y:2018:i:c:p:429-439

DOI: 10.1016/j.worlddev.2017.07.004

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