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Title:Assets, shocks, and poverty traps in rural Mozambique PDF Logo
Authors:Giesbert, Lena
Schindler, Kati
Issue Date:2010
Series/Report no.:Discussion papers // German Institute for Economic Research 1073
Abstract:Using a micro-level approach to poverty traps, this paper explores welfare dynamics among households in post-war rural Mozambique. Conceptually, the paper builds on an asset-based approach to poverty and tests empirically, with household panel data, for the existence of a poverty trap. Findings indicate that there is little differentiation in productive asset endowments over time and that rural households gravitate towards a single equilibrium, which is at a surprisingly low level. The analysis shows that shocks and household coping behavior help to explain the observed poverty dynamics. The single low-level equilibrium points to an overall development trap in the rural farm-based economy. This is attributed to the long-term impact of the civil war, which has consolidated unfavorable economic conditions in rural areas and limited new economic opportunities outside of the agricultural sector.
Subjects:Asset-based approach
Mozambique
poverty trap
shocks
violent conflict
JEL:D31
I32
O12
O18
Document Type:Working Paper
Appears in Collections:DIW-Diskussionspapiere
Publikationen von Forscherinnen und Forschern des DIW

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