Income Diversification, Poverty Traps and Policy Shocks in Cote D'Ivoire and Kenya PDF Download
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Author: Christopher B. Barrett
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
This paper presents evidence on the effects of two different sorts of policy shocks on observed income diversification patterns in rural Africa. In Cote d'Ivoire, households with poor endowments were less able to respond to attractive emerging on-farm and non-farm opportunities. Due to entry barriers to superior livelihood strategies, the benefits of exchange rate reform accrued disproportionately to households that were richer prior to devaluation. By contrast, food-for-work transfers to households in Kenya significantly reduced liquidity constraints, enabling project participants to pursue more lucrative livelihood strategies in non-farm activities and higher-return agricultural production patterns. Jointly, these two shocks underscore the importance of liquidity, market access and skill constraints to skilled non-farm income sources to dynamic poverty traps in rural Africa.
Author: Christopher B. Barrett
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
This paper presents evidence on the effects of two different sorts of policy shocks on observed income diversification patterns in rural Africa. In Cote d'Ivoire, households with poor endowments were less able to respond to attractive emerging on-farm and non-farm opportunities. Due to entry barriers to superior livelihood strategies, the benefits of exchange rate reform accrued disproportionately to households that were richer prior to devaluation. By contrast, food-for-work transfers to households in Kenya significantly reduced liquidity constraints, enabling project participants to pursue more lucrative livelihood strategies in non-farm activities and higher-return agricultural production patterns. Jointly, these two shocks underscore the importance of liquidity, market access and skill constraints to skilled non-farm income sources to dynamic poverty traps in rural Africa.
Author: Christopher B. Barrett
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
This paper presents evidence on the effects of two different sorts of policy shocks on observed income diversification patterns in rural Cote d'Ivoire and Kenya. Data from Cote d'Ivoire show that massive currency devaluation reduced farmer income diversification by inducing a reallocation of effort toward the production of tradable agricultural commodities. But households with poor endowments were less able to respond to attractive emerging on-farm and non-farm opportunities. Due to entry barriers to superior livelihood strategies, the benefits of exchange rate reform accrued disproportionately to households that were richer prior to devaluation. Food-for-work transfers to households in semi-arid Kenya appear to have significantly reduced the liquidity constraints faced by project participants, enabling them to pursue more lucrative livelihood strategies in non-farm activities and higher-return agricultural production patterns. FFW had no discernible effect on income diversification because the agroecology necessitates considerable diversification whether or not one participates in the food-for-work project.
Author: Nicholas Minot
Publisher: Intl Food Policy Res Inst
ISBN: 0896291480
Category : Social Science
Languages : en
Pages : 149
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Book Description
Vietnam has experienced macroeconomic stability and high rates of economic growth since the mid-1990s; nevertheless, it remains one of the 30 poorest countries in the world. Within Vietnam, the Northern Uplands is the poorest region, as well as being the most dependent on agriculture. This report examines income diversification in the Northern Uplands, including its contribution to poverty reduction and the constraints currently limiting further diversification. Given that crop and income diversification have been identified as essential components in raising rural incomes and reducing rural poverty, this report has significant implications for those involved in formulating agricultural policy and devising development programs.
Author: Joachim von Braun
Publisher: Springer
ISBN: 9400770618
Category : Science
Languages : en
Pages : 388
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Book Description
This book takes a new approach on understanding causes of extreme poverty and promising actions to address it. Its focus is on marginality being a root cause of poverty and deprivation. “Marginality” is the position of people on the edge, preventing their access to resources, freedom of choices, and the development of capabilities. The book is research based with original empirical analyses at local, national, and local scales; book contributors are leaders in their fields and have backgrounds in different disciplines. An important message of the book is that economic and ecological approaches and institutional innovations need to be integrated to overcome marginality. The book will be a valuable source for development scholars and students, actors that design public policies, and for social innovators in the private sector and non-governmental organizations.
Author: Lire Ersado
Publisher: World Bank Publications
ISBN:
Category : Income
Languages : en
Pages : 28
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Book Description
"The author examines, taking into account the urban-rural divides, the changes and welfare implications of income diversification in Zimbabwe following macroeconomic policy changes and droughts of the early 1990s. Data from two comparable national income, consumption and expenditure surveys in 1990-91 and 1995-96, which straddled a period of economic volatility and natural disasters, show that the percentage of households earning income from private and informal sources grew considerably, while that from government and formal sources declined in the aftermath of the drought and policy changes. The author finds that, in general, rural households tend to have a more diversified portfolio of income compared with their urban counterparts, and the degree of diversification decreases with the level of urbanization. However, there are important differences in the level of diversification within the rural and urban areas depending on wealth: While the relatively better-off households have a more diversified income base in rural areas, it is the poor who pursue multiple income sources in urban areas. A decomposition of changes in welfare indicates that the total contribution of income diversification is large and increased between 1990-91 and 1995-96 in both urban and rural areas. On the other hand, there were significant declines in returns to human and physical capital assets during the same period. The findings suggest that households with a more diversified income base are better able to withstand the unfavorable impacts of the policy and weather shocks. The fact that relatively better-off households have a more diversified income base following the shocks implies that the poor are more vulnerable to economic changes unaccompanied by well-designed safety nets. "--World Bank web site.
Author: Abate, Gashaw Tadesse
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 64
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Book Description
Increased diversification of rural households into the rural non-farm economy is an important driver of economic growth and structural transformation in countries like Ethiopia where the vast majority of people live in rural areas and are largely dependent on seasonal agriculture. Some of the benefits of diversification include efficient utilization of asset endowments (e.g., labor during dry season) and reduction of risks. In this study we explore the: (i) patterns and trends of diversification, (ii) drivers of diversification including the association between rainfall risk/shocks and diversification, and (iii) welfare effects of diversification during the recent decade using three rounds of representative household data from the four main regions of Ethiopia. We used Cragg’s double-hurdle model, a method that considers the two-step decision making process in diversification (i.e., participation and extent of participation), to identify the determinants of diversification and a fixed-effect and instrumental variable (IV) approaches to understand the links between diversification and household welfare. The descriptive results show that rural households generally adopt a livelihood strategy dominated by farming and that the level of diversification has been stagnant over the period of analysis considered. More importantly, the vast majority of households continue to draw a substantial share of their income from crop production, followed by livestock. The income from non-farm activities accounts only between 17 percent and 23 percent of the total income. The econometrics results show that diversification is positively associated with credit access, membership in social insurance, ownership of mobile phone, relative measure of household wealth, and population density. Conversely, access to relatively large, fertile, and irrigable land discourages diversification into non-farm activities. The analysis on the association between rainfall risks and diversification indicates that rural households use income diversification both as risk mitigation and shock coping strategy. The results on the link between income diversification and household welfare indicate a positive association between diversification and household total consumption expenditure, dietary diversity score, and housing/roof quality. In sum, the results imply the need for a deliberate effort to expand the non-farm economy so as to tap its full potential for employment generation, income growth, and welfare improvements. A starting point could be for agricultural and rural development policies and investments to go beyond promotion of cereal crop production and facilitate participation in high value crop, livestock, aquaculture production. Incentivizing investments in value addition activities that can create and enrich upward and downward linkages in the midstream segment of agricultural value chains is another potential avenue to boost rural non-farm economy.
Author: Frank Ellis
Publisher: Routledge
ISBN: 1134296282
Category : Business & Economics
Languages : en
Pages : 404
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Book Description
This important new collection of contributions brings together current thinking on poverty reduction and rural livelihoods in developing countries. As well as leading economists in the field such as Frank Ellis and Chris Barrett, there are a number of contributors from developing countries themselves. The book examines both macroeconomic and microeconomic phenomena and contains wide range of case studies. Skilfully exposing the gap that exists between the rhetoric of poverty reduction strategies in capital cities and the practice of public sector delivery in rural areas, this key text will be essential reading for advanced students and researchers in the fields of rural development, rural livelihoods, poverty reduction strategies and Sub-Saharan Africa development as well as advisors and practitioners in international organizations.
Author: Agnes Andersson Djurfeldt
Publisher: Oxford University Press
ISBN: 0198799284
Category : Business & Economics
Languages : en
Pages : 286
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Book Description
This book contributes to the understanding of smallholder agriculture in sub-Saharan Africa through addressing the dynamics of intensification and diversification within and outside agriculture in contexts where women have much poorer access to agrarian resources than men
Author: Alain de Janvry
Publisher: Springer Science & Business Media
ISBN: 0387297480
Category : Business & Economics
Languages : en
Pages : 390
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Book Description
This collection of essays honors a remarkable man and his work. Erik Thorbecke has made significant contributions to the microeconomic and the macroeconomic analysis of poverty, inequality and development, ranging from theory to empirics and policy. The essays in this volume display the same range. As a collection they make the fundamental point that deep understanding of these phenomena requires both the micro and the macro perspectives together, utilizing the strengths of each but also the special insights that come when the two are linked together. After an overview section which contains the introductory chapter and a chapter examining the historical roots of Erik Thorbecke's motivations, the essays in this volume are grouped into four parts, each part identifying a major strand of Erik's work—Measurement of Poverty and Inequality, Micro Behavior and Market Failure, SAMs and CGEs, and Institutions and Development. The range of topics covered in the essays, written by leading authorities in their own areas, highlight the extraordinary depth and breadth of Erik Thorbecke's influence in research and policy on poverty, inequality and development. Acknowledgements These papers were presented at a conference in honor of Erik Thorbecke held at Cornell University on October 10-11, 2003. The conference was supported by the funds of the H. E. Babcock Chair in Food, Nutrition and Public Policy, and the T. H. Lee Chair in World Affairs at Cornell University.
Author: Philippe Aghion
Publisher: Elsevier
ISBN: 0080461131
Category : Business & Economics
Languages : en
Pages : 1139
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Book Description
The Handbooks in Economics series continues to provide the various branches of economics with handbooks which are definitive reference sources, suitable for use by professional researchers, advanced graduate students, or by those seeking a teaching supplement.The Handbook of Economic Growth, edited by Philippe Aghion and Steven Durlauf, with an introduction by Robert Solow, features in-depth, authoritative survey articles by the leading economists working on growth theory.Volume 1A, the first in this two volume set, covers theories of economic growth, the empirics of economic growth, and growth policies and mechanisms.Volume 1B, the second in this two volume set, covers technology, trade and geography, and growth and socio-economic development.
