Peasants’ Poverty and Inequality in Angola

Abstract

This paper analyses peasants’ poverty and inequality in Angola from 2004 to 2013 using a spatial panel data model. Peasant farming is the most common economic activity in Africa. Therefore the relationship between this economic activity (peasant farming), poverty and inequality is investigated. Other covariates include public expenditure, access to education and medical services and agricultural non-governmental organization that help peasants in Angola. Several spatial models are adopted, first a spatial Durbin model, then the spatial error model, the spatial autoregressive model and finally a spatial model with endogeneity, the Arellano–Bover (J Econom 68:29–51, 1995) spatial system panel model. The results reveal that spatial autocorrelation occurs in Angola and peasants are affected by inequality but not by poverty. The paper is not comparable with analysis of peasants in Africa because it adopts a spatial analysis. Moreover, the positive but statistically insignificant relationship with poverty means that there is no correlation between peasantry and poverty but there is a negative correlation between the Gini coefficient and peasantry.