Poverty

The poorest countries depend preponderantly on a limited number of agricultural commodities for exports, employment, income, government revenues, savings, and Investment. In these economies a small percentage change in the output or prices of these major commodities has a large macroeconomic effect, in contrast to nontraditional commodities or services which typically play a small role in the economy.

 

Why focus on predominantly rural countries, which is the charge of this paper? It is because predominantly rural countries influence population growth and demographic transition differently than urbanized countries. Following Gary Becker, it is now generally believed  by economists that human fertility and population growth rates are determined by income and education.