IT IS NOT ABOUT PRODUCTIVITY; WELFARE IT IS ABOUT RIGHTS
Keywords:
Sub-Saharan Africa; Poverty reduction; Recursive modelAbstract
We assume that the undernourishment or starvation continued in Sub-Saharan Africa (SSA) because there the misery persisted. Poverty reduction is the only way to the end hunger in Africa. Also, for an agricultural country in SSA the best way to solve the problem of poverty is through agricultural development. Our analysis is based upon a sample of nine countries in SSA, so called SSA – 9. SSA has around 47,5 percent of rural population in extreme poverty while between 1990 and 2005 when food prices were stable and low, extreme rural poverty in SSA involved around 64.6 percent of population. Thus, we have built up a model trying to answer to the question of how the agricultural gears in SSA – 9 were moving between 1990 and 2005 and assess how the agricultural growth could reduce rural poverty. We used a system of recursive rather than simultaneous equations: a recursive model is a special case of an equation system where the endogenous variables are determined one at a time in sequence. The most important result is that the main tools that had a strong relation with poverty reduction in SSA – 9 were legislation on property rights (PR), access to the credit system, Human capital and infrastructure.
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