Title
Dynamic and Long-term Linkages among Growth, Inequality and Poverty in Developing Countries
Abstract
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.
Keywords
Inequality, Poverty, Growth, Agriculture, Non-agriculture, MDG
JEL Classification
C20, I15, I39, O13
Inquiries
School of Social Sciences, University of Manchester, UK
and
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
and
Statistics and Studies for Development(SSD) Division, Strategy and Knowledge Management Department,
International Fund for Agricultural Development(IFAD), Italy