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Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Document Type

Article

Publication Date

10-2013

Abstract

This paper provides for the first time a clear quantitative link between agricultural productivity and poverty among rural households in Nepal. Using data from a nationwide Nepal Living Standard Survey 2004, we first estimate household-specific productivity per worker under both Cobb–Douglas and translog production functions. Second, the paper identifies the determinants of productivity. Third, we explore a theoretical link between productivity and poverty using Sen's poverty index and find empirically that productivity growth substantially helps poverty reduction. Finally, the integrated effects of changes in productivity determinants are found to be stronger than the outcomes of sectoral policies taken in isolation.

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Economics Commons

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