The role of agricultural growth in poverty reduction: an empirical study of selected Latin American countries
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Date
2024
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Abstract
Agriculture plays a critical role in poverty reduction, particularly in developing countries where it serves as one of the leading sources of income and employment. This study examines how agricultural growth impacts poverty alleviation, focusing on the specific conditions and mechanisms in some Latin American countries that have received limited empirical attention. Each chapter addresses a different aspect of the central question: What are the mechanisms through which agricultural growth reduces poverty? The thesis begins with a review of foundational literature and progresses to empirical findings, applying well-established methodologies. The first chapter focuses on the regional disparities within Peru, a country with distinct natural regions characterized by unique agroecological and socio-economic conditions. The coastal areas, with agrifood systems strongly integrated into international markets and focused on labor-intensive crops and food industries, contrast sharply with the Sierra and Selva regions, where traditional subsistence farming prevails. The second chapter analyzes how the composition of economic growth sectors influences poverty reduction in Paraguay and Peru. The final chapter examines the persistence of rural poverty using continuous household surveys and a Dynamic Random Effects Probit Model. The thesis explores how regional disparities, economic structure, and government policies shape the pro-poor effects of agricultural growth. This topic gains even greater relevance in countries that depend more heavily on agriculture and have limited diversification of other economic sectors, such as Paraguay, a landlocked country at the heart of South America, or in challenging geographical regions like the Peruvian Sierra, where agriculture is a pillar, but distances and lack of market integration represent barriers. The findings highlight the need for tailored policies that consider local agricultural characteristics, labor market dynamics, and the integration of the agrifood sector to enhance the poverty-reducing potential of agriculture.
Description
Tesis (Doctor in Agricultural Sciences)--Pontificia Universidad Católica de Chile, 2024
Keywords
Economic growth, Poverty reduction, Rural development, Paraguay, Peru