Does poverty trap rural malagasy households?

thomas, Anne-Claire;Gaspart, Frédéric
(2015) World Development — Vol. 67, n° 1, p. 490-505 (2015)

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Authors
  • thomas, Anne-ClaireEuropean Commission, Joint research centrespra, Italy
    Author
  • Gaspart, FrédéricUCLouvain
    Author
Abstract
This paper contributes to the understanding of the persistently high poverty rates in rural Madagascar. It tests the existence of poverty traps thanks to a Markovian poverty transition model where past poverty is allowed to have either a slope or an intercept effect on the current poverty risk. An original and large household panel data survey covering the period 1996-2006 is used. Results clearly indicate that poverty is creating a vicious circle leading to a poverty trap. These results encourage the implementation of short-run poverty reduction policies including safety nets, cash transfers, cash for work, and short term credits.
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thomas, A.-C., & Gaspart, F. (2015). Does poverty trap rural malagasy households? World Development, 67(1), 490-505. https://doi.org/10.1016/j.worlddev.2014.11.012 (Original work published 2015)