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


Drawing upon cross-country panel data for developing countries, the present study examines the role of agricultural growth in reducing inequality and poverty by modelling the dynamic linkage between agricultural and non-agricultural sectors. For this purpose, we have compared the role of agricultural growth and that of non-agricultural growth and have found that agricultural growth is more important in reducing poverty, while the negative effect of agricultural growth on inequality is found in a few models where specific definitions of inequality are adopted. Our analysis generally reinforces the case for revival of agriculture in the post-2015 discourse, contrary to the much emphasised roles of rural-urban migration and urbanisation as main drivers of growth and elimination of extreme poverty.


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

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


School of Social Sciences, University of Manchester, UK

Raghav GAIHA

Faculty of Management Studies, University of Delhi, India
Harvard School of Public Health, Harvard University Boston, USA