Last modified: 2014-10-24
Abstract
Numerous studies have set out to establish a connection between agricultural productivity growth and rural poverty in developing nations. Time and time again, results show that development in the agricultural sector is crucial in reducing rural poverty. This paper applies the conclusions drawn from these studies to the current state of agriculture in Kenya, where the sector represents a significant portion of economic activity. Using the percent change in GDP per capita from the previous year as a proxy dependent variable for rural poverty, results show that the percent change in agricultural value added per worker from the previous year, the percent change in terms of trade from the previous year, and the percent change in agriculture as a percentage of GDP from the previous year are all significant. Policy implications are explored, with a focus on alleviating rural poverty.