Economic reform,growth and the poor: Evidence from rural Ethiopia |
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Authors: | Stefan Dercon |
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Affiliation: | University of Oxford, Centre for the Study of African Economies, Manor Road Building, Oxford OX1 3UQ, United Kingdom |
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Abstract: | A new decomposition of poverty changes is developed to analyse the determinants of poverty changes during a period of economic reform (1989–1995) in villages in Ethiopia. Poverty fell substantially, but with diverse experiences across villages. Shocks mattered, but the main factors driving consumption changes were relative prices changes, resulting in changes in the returns to land, labour, human capital and location. The experience of the poor is mixed: one group of the poor in 1989, with relatively good land and location, outperformed all other households, while another group with much poorer endowments and location experienced virtually unchanged and persistent poverty. |
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Keywords: | O12 Q12 I32 |
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