Beyond agriculture versus non-agriculture: Decomposing sectoral growth–poverty linkages in five African countries

Africa’s development debate is often cast as “agriculture versus non-agriculture”, with agriculture’s proponents arguing that agricultural growth is more effective at reducing poverty. This “dual economy” perspective overlooks the heterogeneity within and synergies between these two broad sectors. R...

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Main Authors: Dorosh, Paul A., Thurlow, James
Format: Journal Article
Language:Inglés
Published: Elsevier 2018
Subjects:
Online Access:https://hdl.handle.net/10568/146288
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author Dorosh, Paul A.
Thurlow, James
author_browse Dorosh, Paul A.
Thurlow, James
author_facet Dorosh, Paul A.
Thurlow, James
author_sort Dorosh, Paul A.
collection Repository of Agricultural Research Outputs (CGSpace)
description Africa’s development debate is often cast as “agriculture versus non-agriculture”, with agriculture’s proponents arguing that agricultural growth is more effective at reducing poverty. This “dual economy” perspective overlooks the heterogeneity within and synergies between these two broad sectors. Recent studies decompose agriculture into subsectors and find that agricultural growth led by smallholder farmers is even more effective at reducing poverty than larger-scale estate farms. In contrast, few studies estimate subsectoral growth–poverty linkages for non-agriculture. Yet we strongly expect, for example, that growth led by informal traders or foreign-owned mining companies will have quite different implications for poverty reduction. Different perspectives on what constitutes “non-agriculture” might therefore explain divergent views on its relative importance for poverty reduction. To address this gap in our understanding, we estimate sectoral poverty–growth elasticities using economy-wide models for five African countries. While our estimated elasticities are higher for agriculture than for non-agriculture as a whole, the extent to which this is true varies considerably across nonagricultural subsectors (and across countries). We find that the poverty–growth elasticities for trade and transport services and manufacturing, especially agro-processing, are often close to, and sometimes exceed, agriculture’s. This means that growth led by these nonagricultural subsectors might be as effective as agriculture at reaching the poor. This confirms the need for a more nuanced treatment of non-agriculture in Africa’s policy debate, and may explain conflicting perspectives on agriculture’s role vis-à-vis non-agriculture.
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spelling CGSpace1462882025-02-24T06:45:47Z Beyond agriculture versus non-agriculture: Decomposing sectoral growth–poverty linkages in five African countries Dorosh, Paul A. Thurlow, James industrial sector income time study economic growth agricultural sector poverty alleviation agricultural policies transport agriculture elasticities macroeconomics economic sectors poverty Africa’s development debate is often cast as “agriculture versus non-agriculture”, with agriculture’s proponents arguing that agricultural growth is more effective at reducing poverty. This “dual economy” perspective overlooks the heterogeneity within and synergies between these two broad sectors. Recent studies decompose agriculture into subsectors and find that agricultural growth led by smallholder farmers is even more effective at reducing poverty than larger-scale estate farms. In contrast, few studies estimate subsectoral growth–poverty linkages for non-agriculture. Yet we strongly expect, for example, that growth led by informal traders or foreign-owned mining companies will have quite different implications for poverty reduction. Different perspectives on what constitutes “non-agriculture” might therefore explain divergent views on its relative importance for poverty reduction. To address this gap in our understanding, we estimate sectoral poverty–growth elasticities using economy-wide models for five African countries. While our estimated elasticities are higher for agriculture than for non-agriculture as a whole, the extent to which this is true varies considerably across nonagricultural subsectors (and across countries). We find that the poverty–growth elasticities for trade and transport services and manufacturing, especially agro-processing, are often close to, and sometimes exceed, agriculture’s. This means that growth led by these nonagricultural subsectors might be as effective as agriculture at reaching the poor. This confirms the need for a more nuanced treatment of non-agriculture in Africa’s policy debate, and may explain conflicting perspectives on agriculture’s role vis-à-vis non-agriculture. 2018-06-07 2024-06-21T09:06:30Z 2024-06-21T09:06:30Z Journal Article https://hdl.handle.net/10568/146288 en https://hdl.handle.net/10568/151109 https://doi.org/10.1016/j.worlddev.2016.12.008 https://doi.org/10.1016/j.worlddev.2017.07.004 https://doi.org/10.1016/j.worlddev.2018.05.027 Open Access Elsevier Dorosh, Paul A.; and Thurlow, James. 2018. Beyond agriculture versus non-agriculture: Decomposing sectoral growth–poverty linkages in five African countries. World Development 109 (September 2018): 440-451. Special Section: Agricultural Growth and Poverty Reduction. https://doi.org/10.1016/j.worlddev.2016.08.014
spellingShingle industrial sector
income
time study
economic growth
agricultural sector
poverty alleviation
agricultural policies
transport
agriculture
elasticities
macroeconomics
economic sectors
poverty
Dorosh, Paul A.
Thurlow, James
Beyond agriculture versus non-agriculture: Decomposing sectoral growth–poverty linkages in five African countries
title Beyond agriculture versus non-agriculture: Decomposing sectoral growth–poverty linkages in five African countries
title_full Beyond agriculture versus non-agriculture: Decomposing sectoral growth–poverty linkages in five African countries
title_fullStr Beyond agriculture versus non-agriculture: Decomposing sectoral growth–poverty linkages in five African countries
title_full_unstemmed Beyond agriculture versus non-agriculture: Decomposing sectoral growth–poverty linkages in five African countries
title_short Beyond agriculture versus non-agriculture: Decomposing sectoral growth–poverty linkages in five African countries
title_sort beyond agriculture versus non agriculture decomposing sectoral growth poverty linkages in five african countries
topic industrial sector
income
time study
economic growth
agricultural sector
poverty alleviation
agricultural policies
transport
agriculture
elasticities
macroeconomics
economic sectors
poverty
url https://hdl.handle.net/10568/146288
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