Assets and Poverty Traps in Rural Bangladesh

50 Pages Posted: 18 Dec 2009

See all articles by Agnes R. Quisumbing

Agnes R. Quisumbing

International Food Policy Research Institute (IFPRI)

Bob Baulch

International Food Policy Research Institute

Date Written: July 1, 2009

Abstract

This paper applies Carter and Barrett’s theory of assets poverty traps to a unique longitudinal survey from rural Bangladesh. Non-parametric and parametric methods are used to examine the shape of the dynamic asset frontier, the number of equilibria, and whether land and nonland assets stock converge to such equilibria. We find evidence for concavity of the dynamic asset frontier but no evidence for multiple equilibria in the case of both land and non-land assets. It is hypothesised that the existence of well-functioning markets for labour and capital and the absence of discrete differences in livelihood strategies in rural Bangladesh, and Asia more generally, help to explain the contrast between our results and those for several African countries.

Keywords: Asset dynamics, poverty traps, Bangladesh

Suggested Citation

Quisumbing, Agnes R. and Baulch, Bob, Assets and Poverty Traps in Rural Bangladesh (July 1, 2009). Chronic Poverty Research Centre Working Paper No. 143. Available at SSRN: https://ssrn.com/abstract=1524856 or http://dx.doi.org/10.2139/ssrn.1524856

Agnes R. Quisumbing (Contact Author)

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Bob Baulch

International Food Policy Research Institute ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

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