The result from the estimation parallels with analysis in the previous section and
Agriculture and Natural Resources Team (DFID) and Thomson (2004). That is, agricultural
TFP takes two years before reducing the poverty of the economy as a whole. Before that, TFP
in agriculture would increase the poverty because the farmers must invest in order to improve
agricultural productivity. Since the poorest 20% of the population are in agricultural sector,
an improvement in agricultural TFP would generate the higher income directly for the poor in
the long-run. From the estimated model, 1% increase in two-year lag TFP in agriculture can
reduce the poverty rate in monetary term by 5.7065%.