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

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dc.creatorBenfica, Rui
dc.creatorHenderson, Heath
dc.date2021-03-01
dc.date2024-05-22T12:11:15Z
dc.date2024-05-22T12:11:15Z
dc.date.accessioned2026-06-27T15:40:33Z
dc.descriptionWe 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.
dc.identifierhttps://hdl.handle.net/10568/142888
dc.identifier.urihttp://hdl.handle.net/123456789/111370
dc.languageen
dc.publisherInternational Association for Research in Income and Wealth
dc.relationhttps://doi.org/10.22004/ag.econ.280072
dc.relationhttps://doi.org/10.22004/ag.econ.277278
dc.rightsLimited Access
dc.sourceBenfica, 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
dc.subjecteconomic growth
dc.subjectpoverty alleviation
dc.subjecturban areas
dc.subjectdeveloping countries
dc.subjectagricultural productivity
dc.subjectpoverty
dc.subjectrural areas
dc.titleThe effect of the sectoral composition of economic growth on rural and urban poverty
dc.typeJournal Article

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Instituto Internacional de Investigación sobre Políticas Alimentarias (IFPRI)