The effect of the sectoral composition of economic growth on rural and urban poverty

We examine the relationship between the sectoral composition of economic growth and the rural‐urban composition of poverty. To this end, we use a cross‐country panel dataset consisting of 146 rural and urban poverty “spells” for 70 low‐ and middle‐income countries. We find that rural (urban) poverty...

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Autores principales: Benfica, Rui, Henderson, Heath
Formato: Journal Article
Lenguaje:Inglés
Publicado: International Association for Research in Income and Wealth 2021
Materias:
Acceso en línea:https://hdl.handle.net/10568/142888
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author Benfica, Rui
Henderson, Heath
author_browse Benfica, Rui
Henderson, Heath
author_facet Benfica, Rui
Henderson, Heath
author_sort Benfica, Rui
collection Repository of Agricultural Research Outputs (CGSpace)
description We examine the relationship between the sectoral composition of economic growth and the rural‐urban composition of poverty. To this end, we use a cross‐country panel dataset consisting of 146 rural and urban poverty “spells” for 70 low‐ and middle‐income countries. We find that rural (urban) poverty is highly responsive to agricultural (non‐agricultural) productivity growth. The effect of agricultural productivity growth on rural poverty is particularly strong for countries with little dependence on natural resources. We also find that growth in the share of employment in the non‐agricultural sector (i.e. structural transformation) reduces rural poverty, most notably for countries at a low initial level of development. These findings are robust to changes in key assumptions, including using alternative poverty lines. Finally, we use our estimates to examine the past contribution of different sources of economic growth to rural and urban poverty reduction across regions.
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spelling CGSpace1428882025-02-24T06:46:16Z The effect of the sectoral composition of economic growth on rural and urban poverty Benfica, Rui Henderson, Heath economic growth poverty alleviation urban areas developing countries agricultural productivity poverty rural areas We examine the relationship between the sectoral composition of economic growth and the rural‐urban composition of poverty. To this end, we use a cross‐country panel dataset consisting of 146 rural and urban poverty “spells” for 70 low‐ and middle‐income countries. We find that rural (urban) poverty is highly responsive to agricultural (non‐agricultural) productivity growth. The effect of agricultural productivity growth on rural poverty is particularly strong for countries with little dependence on natural resources. We also find that growth in the share of employment in the non‐agricultural sector (i.e. structural transformation) reduces rural poverty, most notably for countries at a low initial level of development. These findings are robust to changes in key assumptions, including using alternative poverty lines. Finally, we use our estimates to examine the past contribution of different sources of economic growth to rural and urban poverty reduction across regions. 2021-03-01 2024-05-22T12:11:15Z 2024-05-22T12:11:15Z Journal Article https://hdl.handle.net/10568/142888 en https://doi.org/10.22004/ag.econ.280072 https://doi.org/10.22004/ag.econ.277278 Limited Access International Association for Research in Income and Wealth Benfica, Rui; and Henderson, Heath. 2021. The effect of the sectoral composition of economic growth on rural and urban poverty. Review of Income and Wealth 67(1): 248-284. https://doi.org/10.1111/roiw.12462
spellingShingle economic growth
poverty alleviation
urban areas
developing countries
agricultural productivity
poverty
rural areas
Benfica, Rui
Henderson, Heath
The effect of the sectoral composition of economic growth on rural and urban poverty
title The effect of the sectoral composition of economic growth on rural and urban poverty
title_full The effect of the sectoral composition of economic growth on rural and urban poverty
title_fullStr The effect of the sectoral composition of economic growth on rural and urban poverty
title_full_unstemmed The effect of the sectoral composition of economic growth on rural and urban poverty
title_short The effect of the sectoral composition of economic growth on rural and urban poverty
title_sort effect of the sectoral composition of economic growth on rural and urban poverty
topic economic growth
poverty alleviation
urban areas
developing countries
agricultural productivity
poverty
rural areas
url https://hdl.handle.net/10568/142888
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