Policy highlights:

  • Agricultural growth is often discussed as a means to ensure poverty reduction, but little is known about the determinants of agricultural growth.
  • Econometric analysis of cross-country panel data shows that an increase in agricultural productivity and agricultural employment contributes to non-agricultural growth, overall growth and poverty reduction.
  • Increases in agricultural productivity are driven by agricultural R&D expenditure, irrigation, fertilizer use, agricultural tractor/machinery use, reduction in inequality of land distributions and reduction in gender inequality.
  • Policies that can stimulate agricultural growth, and thus help reduce poverty, include government investment in agricultural R&D, promoting access to land for landless or smallholder farmers, and developing institutions and laws that promote equal access to education, health, economic opportunities and property rights for men and women.
Share this post