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Driving Forces of Rural Poverty and Distributional Change in Sub-Saharian Africa: The Cases of Burkina Faso, Ghana and Uganda
Project
Project code: DFG 27213983
Contract period: 01.01.2006
- 31.12.2010
Purpose of research: Basic research
The proposed research project aims at identifying the major driving forces of rural poverty and distributional change in Sub-Saharan Africa (SSA). Specifically, the analysis will involve case studies for Burkina Faso, Ghana, and Uganda, where micro and local as well as macro determinants of household incomes will be considered. While each case study will reveal interesting results in its own right, the objective is to draw general lessons, i.e. together the case studies should form more than the sum of the parts. The existing literature on the determinants of rural poverty and distributional change can broadly be divided into studies which analyse rural household behaviour in response to changes at the household and local level, and studies which try to establish a link between distributional outcomes and specific macroeconomic shocks or policies. Taken together, these two strands of the literature cover most of the factors that may affect rural households, but the literature appears to be incomplete in several respects. Studies belonging to the first strand tend to focus on specific aspects of rural income generation, thereby failing to account for the interactions between the micro determinants of household income and to trace micro changes back to changes at the macro level. The approaches employed in the second strand of the literature either lack a specification of transmission channels or suffer from being too stylised and not well informed by micro data. With the proposed project we intend to contribute to closing these gaps. In doing so, we will first identify the most relevant micro, local and macro determinants of household incomes and review the available evidence on their distributional impact in the three countries under consideration. This descriptive assessment serves to derive testable hypotheses regarding the drivers of distributional change. We will then specify a comprehensive model of rural income generation that accounts for the major constraints at the micro level, and a macro model that captures the transmission of shocks and policies to the household level. Finally, and most importantly, we will link the two models in a macro-micro simulation analysis in order to quantify the impact of the main country-specific external shocks and policy reforms on poverty and income distribution. By revealing the relative strength of the various factors determining household incomes, the simulation analysis will also provide information that can be used to derive priority areas for rural development policy.
Section overview
Subjects
- Agricultural Sociology
- Agroeconomics
