Agricultural Productivity and Poverty Reduction in Nepal

Satis Devkota, Mukti Upadhyay

Research output: Contribution to journalArticlepeer-review

16 Scopus citations


This paper provides for the first time a clear quantitative link between agricultural productivity and poverty among rural households in Nepal. Using data from a nationwide Nepal Living Standard Survey 2004, we first estimate household-specific productivity per worker under both Cobb-Douglas and translog production functions. Second, the paper identifies the determinants of productivity. Third, we explore a theoretical link between productivity and poverty using Sen's poverty index and find empirically that productivity growth substantially helps poverty reduction. Finally, the integrated effects of changes in productivity determinants are found to be stronger than the outcomes of sectoral policies taken in isolation.

Original languageEnglish (US)
Pages (from-to)732-746
Number of pages15
JournalReview of Development Economics
Issue number4
StatePublished - Nov 2013
Externally publishedYes


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