Role of agriculture in achieving MDG 1 in Asia and the Pacific Region

Role of agriculture in achieving MDG 1 in Asia and the Pacific Region [1]

This paper examines whether agricultural growth through public expenditure, ODA or investment will improve significantly the prospects of achieving MDG 1 of halving poverty in Asia and the Pacific Region. As more than a few countries in this Region
recorded impressive economic growth in the early years of the present decade, the case for the widely used poverty threshold of US$1.25 per day (at 2005 PPP) for assessing progress towards MDG1 is not so compelling now. Accordingly, the present assessment uses two poverty thresholds: US$2 per day and US$1.25 per day (both at 2005 PPP). Analysis, based on country panel data, confirms robustly that increases in public agricultural
expenditure, agricultural ODA, agricultural investment, or fertiliser use (as a proxy for technology), accelerate agricultural and GDP growth. Consequently, the headcount and depth of poverty indices are reduced substantially.

Publication Date:

01/01/2011

Author(s): Raghav Gaiha [2], Katsushi Imai [3], Ganesh Thapa [4]

Source: The University of Manchester [5]

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