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Determinants of rural income in Peru: A special emphasis on agricultural poverty reduction
Year:2013
Research Areas
  • Agriculture
Information
Abstract
While most Latin American countries (LAC) have shown rather moderate economic growth rates over the last decade, Peru is among the fastest developing world regions. On average, LAC?s GDP grew annually 3.85% between 2004 and 2012, but Peru showed an average growth rate of 6.79%, even outpacing the East Asia and Pacific region which grew on average 4.3% per year (WDI, 2014). This economic growth has translated into a sharp decline of extreme poverty and inequality. Between 2004 and 2012 the share of people living in poverty declined from about 59% to 26%. In 2004 the lowest 20% of the income distribution held only 3.3% of total income per capita; in 2012 this share had increased to 4.1%. While these developments are especially encouraging for urban areas, Peru still shows severe poverty incidences in its rural areas. Despite the Peruvian urbanization trend, still about one quarter of the population lived in rural areas of which 53% remained poor in 2012. Between 2004 and 2012 extreme rural poverty dropped from 42% to 20%, but moderate rural poverty decreased much slower from 42% to still around 33% (see figure 1). Real rural household income on average doubled between 2004 and 2012. The growth incidence curves in Figure 2 illustrate that this growth was pro-poor, especially in the second half of the period. Figure 3 illustrates that income growth in rural Peru also reduced income inequality.
International
Si
Congress
GIGA research colloquium
Entity
German Inst.of Global and Area Studies
Entity Nationality
ALEMANIA
Place
Hamburgo
Start Date
04/09/2013
End Date
04/09/2013
Participants
  • Autor: Insa Flachsbarth . (UPM)
  • Autor: Alberto Garrido Colmenero (UPM)
  • Autor: Jann Lay
Research Group, Departaments and Institutes related
  • Creador: Grupo de Investigación: Economía Agraria y Gestión de los Recursos Naturales
  • Centro o Instituto I+D+i: Centro de Estudios e Investigación para la Gestión de Riesgos Agrarios Medioambientales (CEIGRAM). Centro Mixto UPM-AGROMUTUA-ENESA
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