Dynamic and Long-term Linkages among Growth, Inequality and Poverty in Developing Countries


Drawing upon cross-country panel data for developing countries, the present study sheds new empirical light on dynamic and long-term linkages among growth in agricultural and non-agricultural sectors, inequality and poverty. Agricultural growth is found to be the most important factor in reducing inequality and poverty. The role of agricultural growth in reducing inequality is undermined by ethnic fractionalisation which tends to make inequality more persistent. Our analysis points to a drastic shift away from rural-urban migration and urbanisation as main drivers of growth and elimination of extreme poverty, and towards revival of agriculture in the post-2015 policy discourse.


Inequality, Poverty, Growth, Agriculture, Non-agriculture, MDG

JEL Classification

C20, I15, I39, O13


Katsushi S. IMAI
School of Social Sciences, University of Manchester, UK
Research Institute for Economics and Business Administration
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: +81-78-803-7036
FAX: +81-78-803-7059

Raghav GAIHA
Faculty of Management Studies, University of Delhi, India
Statistics and Studies for Development(SSD) Division, Strategy and Knowledge Management Department,
International Fund for Agricultural Development(IFAD), Italy