The Pathways out of Poverty in Rural Indonesia: an empirical assessment

Charles Timmer, Julian Weisbrod () and Neil McCulloch ()

No 29, Proceedings of the German Development Economics Conference, Berlin 2006 from Verein für Socialpolitik, Research Committee Development Economics

Abstract: Since most poor live in rural areas, primarily engaged in low productivity farm activity, the pathway out of poverty must be strongly connected to productivity increases, whether they are realised in farming, rural non-farm enterprises or via urban migration. By utilizing the IFLS panel dataset for 1993 and 2000 from Indonesia, this paper shows, using empirical techniques, which pathways out of poverty were most successful in Indonesia?s past. Our findings suggest that the increased engagement of rural farmers in rural non-farm enterprises is a key way to alleviate rural poverty.

Date: 2006
New Economics Papers: this item is included in nep-agr, nep-dev and nep-sea
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