Agricultural Productivity and Poverty Reduction: Linkages and Pathways
The purpose of this literature review is to identify the linkages between increases in agricultural productivity and poverty reduction. Cross-country and micro-level empirical studies provide general support for the theories of a positive relationship between growth in agricultural productivity and poverty alleviation, regardless of the measures of productivity and poverty that are used. An overview of several studies illustrates the variety of approaches that contribute to the consistent finding that agricultural productivity is important for poverty reduction. The evidence suggests that there are multiple pathways through which increases in agricultural productivity can reduce poverty, including real income changes, employment generation, rural non-farm multiplier effects, and food prices effects. However, barriers to technology adoption, initial asset endowments, and constraints to market access may all inhibit the ability of the poorest to participate in the gains from agricultural productivity growth.