The Relationship between Agricultural Production and Poverty in Malawi: A District Level Analysis

Abstract

The importance of agricultural production in reducing poverty, especially in developing countries is well established in the literature. Most of the households in sub-Saharan Africa have their livelihood dependent on subsistence agriculture. Improvements in agricultural practices that result in higher yields and hence more income are some of the best strategies in dealing with rural poverty. This study looked at the relationship between agricultural production and the poverty rate at district level in Malawi. The study used panel data from IHS2 and IHS3 with the district head count poverty rate as a dependent variable. Some of the variables used were district annual maize production, tonnage of agricultural subsidy received per district, and the proportion of people benefiting from agricultural subsidy. The results show that there is a link between agriculture production and poverty at district level. An increase in maize production was associated with a reduction in the district poverty rate. DOI: 10.5901/mjss.2014.v5n21p221