Poverty reduction mechanisms of agricultural growth review

Abstract

Agricultural growth is considered to be more pro-poor than other sectoral growth, as evidenced by numerous empirical studies. However, the process by which it contributes to poverty reduction has been discussed only to a limited extent. By systematically reviewing extant literature, the study synthesizes what are poverty reduction mechanisms of agricultural growth and how the poor are affected under each mechanism. The study finds that agricultural growth can help the poor escape poverty directly by creating more employment opportunities, reducing food prices, increasing wages and indirectly by stimulating other sectoral growth. The findings also suggest that under the same mechanism, the growth may benefit one group of the poor while having no impacts or increase poverty in another group. Benefits of the agricultural growth distributed through different mechanisms are driven by growth techniques and moderated by structural factors. As a result, comprehensive and customized agriculture-based poverty interventions are required if the growth aims to benefit all poor groups in the long run.