Small-scale farmers in developing countries may become trapped in poverty by lack of the liquidity needed to make profitable investments. Increased access to credit could generate pro-poor economic growth if poor households are otherwise liquidity-constrained and if liquidity-constrained households
Access to public infrastructure, institutional thickness and pro-poor growth in Rural Peru
β Scribed by Javier A. Escobal; Carmen Ponce
- Publisher
- John Wiley and Sons
- Year
- 2011
- Tongue
- English
- Weight
- 231 KB
- Volume
- 23
- Category
- Article
- ISSN
- 0954-1748
- DOI
- 10.1002/jid.1775
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β¦ Synopsis
Abstract
Using panel data from Rural Peru we explore the role of institutional thickness on furthering the effects of key infrastructure investments on proβpoor growth. Institutional thickness is characterised here as the result of a combination of four interrelated characteristics: (a) the presence of organisations signalling collective action; (b) the degree of productive asset inequality; (c) the degree of inequality of opportunities and (d) the degree of political fragmentation. The paper shows that institutionally thick environments do contribute to amplify the effects of public infrastructure on income growth for those belonging to the poorest tercile, allowing poverty to be more responsive to growth. Copyright Β© 2011 John Wiley & Sons, Ltd.
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