Title: Does Poverty Trap Rural Malagasy Households?
Citation: WORLD DEVELOPMENT vol. 67 p. 490-505
Publication Year: 2015
JRC N°: JRC95557
ISSN: 0305-750X
URI: http://www.sciencedirect.com/science/article/pii/S0305750X14003702
DOI: 10.1016/j.worlddev.2014.11.012
Type: Articles in periodicals and books
Abstract: This paper contributes to the understanding of the persistently high poverty rates in rural Madagascar. It tests the existence of poverty traps thanks to a Markovian poverty transition model where past poverty is allowed to have either a slope or an intercept effect on the current poverty risk. An original and large household panel data survey covering the period 1996–2006 is used. Results clearly indicate that poverty is creating a vicious circle leading to a poverty trap. These results encourage the implementation of short-run poverty reduction policies including safety nets, cash transfers, cash for work, and short term credits.
JRC Directorate:Sustainable Resources

Files in This Item:
There are no files associated with this item.

Items in repository are protected by copyright, with all rights reserved, unless otherwise indicated.