scholarly journals Growth, inequality and poverty: a robust relationship?

2021 ◽  
Author(s):  
Gustavo A. Marrero ◽  
Luis Servén
Keyword(s):  
Indirect Effect ◽  
Poverty Rate ◽  
High Poverty ◽  
Subsequent Increase ◽  
Policy Makers ◽  
Per Capita Gdp ◽  
Poverty And Inequality ◽  
Per Capita ◽  
Econometric Approach

AbstractThe consequences of poverty and inequality for growth have long preoccupied academics and policy-makers. This paper revisits the inequality-growth and poverty-growth links. Using a panel of 158 countries between 1960 and 2010, we find that the correlation of growth with poverty is consistently negative: A 10 p.p. decrease in the headcount poverty rate is associated with a subsequent increase in per capita GDP between 0.5 and 1.2% per year. In contrast, the correlation of growth with inequality is empirically fragile—it can be positive or negative, depending on the empirical specification and econometric approach employed. However, the indirect effect of inequality on growth through its correlation with poverty is robustly negative. Closer inspection shows that these results are driven by the sample observations featuring high poverty rates.

Growth, Poverty, and Distribution in Ethiopia

2019 ◽  
pp. 351-365
Author(s):  
Abebe Shimeles
Keyword(s):  
Poverty Reduction ◽  
Potential Role ◽  
Initial Conditions ◽  
Youth Unemployment ◽  
Poverty Rate ◽  
Rapid Population Growth ◽  
Poverty And Inequality ◽  
Per Capita ◽  
Over Time

The Ethiopian economy has maintained a rate of growth in output per worker for twenty years, averaging 6 per cent in real terms. As a result, per capita GDP during this period has doubled, the poverty rate has declined, and productivity in agriculture has improved. However, the country still grapples with rising youth unemployment and widespread poverty mediated by rapid population growth. This chapter examines the interactions between growth, poverty, and inequality by examining features of the Ethiopian labour market. The dynamics of poverty are discussed from the perspective of stylized facts on its components, including the persistence of poverty over time and the role of initial conditions in facilitating or impeding poverty reduction. The chapter investigates the potential role of changes in the sectoral share of employment on poverty and inequality under various policy settings.

scholarly journals CONTRIBUTION OF FINANCIAL DEPTH AND FINANCIAL ACCESS TO POVERTY REDUCTION IN INDONESIA

2018 ◽  
Vol 21 (1) ◽  
pp. 95-122
Author(s):  
Pinkan Mariskania Pasuhuk
Keyword(s):  
Financial Services ◽  
Poverty Reduction ◽  
Random Effect ◽  
Poverty Rate ◽  
Contradictory Result ◽  
High Poverty ◽  
Financial Access ◽  
Policy Makers ◽  
Level Data ◽  
Financial Depth

This research attempts to analyze possible relationship between financial depth and financial access indicators with poverty in Indonesia. Financial depth indicators include the ratio of saving over gross domestic regional products and the ratio of credit over gross domestic regional products. Financial access indicators include the number of banks and number of cooperatives, while poverty is measured by poverty headcount ratio. This research is utilizing panel provincial level data in Indonesia consisting of 33 provinces for the period of 2007 to 2015 using OLS estimation with fixed and random effect method. The main findings of this research is that financial development variables showed negative and significant relationship with poverty, confirming the contribution of financial depth and financial access in reducing poverty in Indonesia. However, the saving variable showed contradictory result, suggesting that in regions where saving rate is high, poverty rate tend to be high. The possible explanation is that consumption of private and household sector in the research period contribute significantly to Indonesian GDP, while the financial resources obtained from saving is not channeled to the pro poor investment. Therefore, the effect of consumption is more effective in reducing poverty than the effect of saving. This research will provide academic evidence for the policy makers in implementing financial inclusion policy in Indonesia with the objective of improving the quality of financial services to help alleviate poverty.

scholarly journals Worldwide inverse correlation between Bacille Calmette-Guérin immunization and COVID-19 mortality

2020 ◽  
Author(s):  
Willis X. Li
Keyword(s):  
Inverse Correlation ◽  
Poverty Rate ◽  
Vaccination Rate ◽  
Bacille Calmette Guerin ◽  
Multivariate Statistical ◽  
Per Capita Gdp ◽  
Bcg Vaccination ◽  
The World ◽  
Per Capita ◽  
Using Data

Abstract The coronavirus disease 2019 (COVID-19) pandemic has spread to all countries in the world after more than half a year since it was first reported in late 2019, and different countries have been impacted differently. Multivariate statistical analyses were used to evaluate COVID-19 deaths and cases relative to nine other demographic and socioeconomic factors in all countries and regions of the world using data as of August 1, 2020. The factors analyzed in the study include a country’s total COVID-19 deaths and cases per million population, per capita gross domestic product (GDP), population density, virus tests per million population, median age, government response stringency index, hospital beds availability per thousand population, extreme poverty rate, Bacille Calmette-Guérin (BCG) vaccination rate, and diphtheria-tetanus-pertussis (DTP3) immunization rate. The study reveals that COVID-19 deaths per million population in a country most significantly correlates, inversely, with the country’s BCG vaccination rate, and also significantly correlates a country’s per capita GDP and median age, while COVID-19 cases per million population significantly correlate with per capita GDP and tests per thousand population. This study contributes to a growing body of evidence supporting the notion that BCG vaccination may be protective against COVID-19 mortality.

scholarly journals Does Inequality Matter for Poverty Reduction? Evidence from Pakistan’s Poverty Trends

2006 ◽  
Vol 45 (3) ◽  
pp. 439-459 ◽  
Author(s):  
Haroon Jamal
Keyword(s):  
Social Services ◽  
Multivariate Regression ◽  
Poverty Reduction ◽  
Wage Gap ◽  
High Poverty ◽  
Inequality Measures ◽  
Poverty And Inequality ◽  
Regression Framework ◽  
Development Expenditure ◽  
Per Capita

The paper explores the linkages between poverty, growth and inequality in the context of Pakistan. Time series macro data are used for the period 1979 to 2002. Consistent poverty and inequality measures are interpolated to facilitate the estimation of poverty elasticity with respect to growth and inequality in a multivariate regression framework. The paper also attempts to find out macroeconomic and structural correlates of inequality. The empirical findings—high poverty elasticity with respect to inequality measures—confirm the importance of inequality in poverty reducing effort. Inflation, sectoral wage gap, and terms of trade in favour of manufacturing exacerbate inequality, while progressive taxation, investment and development expenditure on social services play a significant role in reducing inequality. The results also indicate a positive correlation between per capita GDP and income inequality.

scholarly journals Eliminasi Kesenjangan Kualitas SDM Melalui Kebijakan Afirmasi Pendidikan di Jawa Timur

2020 ◽  
Vol 12 (1) ◽  
pp. 43
Author(s):  
Madekhan Ali
Keyword(s):  
Junior High School ◽  
Poverty Rate ◽  
Second Grade ◽  
Common Symptom ◽  
High Poverty ◽  
Resource Quality ◽  
Per Capita ◽  
The Government ◽  
Poverty Indicators

Kesenjangan kualitas sumberdaya manusia antar wilayah merupakan gejala umum pembangunan daerah, tidak terkecuali Jawa Timur. Selain diperlukan penguatan sinergi sumberdaya pemerintah, masyarakat sipil dan sektor swasta, untuk memastikan eliminasi ketertinggalan wilayah pinggiran dengan wilayah pusat, diperlukan pula implementasi kebijakan afirmasi. Tujuan kajian ini untuk memformulasi kebijakan afirmasi pendidikan dalam rangka eliminasi Kesenjangan Kualitas SDM, sesuai kapasitas sumberdaya dan tingkat kewenangan Pemerintah Provinsi Jawa Timur. Melalui metode studi dokumen diperoleh gambaran bahwa kinerja pertumbuhan ekonomi 2019 Jawa timur termasuk tinggi 5,52%, namun masih diikuti tingginya angka kemiskinan 10,37%. Rata-rata lama sekolah penduduk masih 8,21 tahun, atau setara kelas dua SMP sederajat. Dari 38 Kabupaten/kota, hanya 5 daerah yang pendapatan per kapitanya lebih tinggi dari per kapita nasional. Berbasis indikator IPM didapati 14 Kabupaten memerlukan kebijakan afirmasi, dan 10 Kabupaten dengan indikator kemiskinan di atas angka 13%. Hasil kajian menunjukkan bahwa pemerintah Provinsi Jawa Timur memiliki peluang implementasi kebijakan afirmasi pendidikan dalam tiga bentuk: Pertama melalui jalur kebijakan transfer anggaran pada pos belanja Bantuan Keuangan kepada Kabupaten/kota, kedua melalui jalur Bantuan Hibah yang langsung ditransfer ke rekening sekolah, dan ketiga melalui regulasi yang menjamin mutu sekolah di daerah terpencil.Disparity in the quality of human resources among regions is a common symptom of regional development, included East Java. In addition to strenghening synergy between the government, civil society and the private sector, it is necessary to implement affirmative policies. The purpose of this study is to formulate educational affirmative policy in the context of eliminating disparity of human resource quality, according to resource capacity and the level of authority of the Government of East Java Province. Based on documents analysis method, shows that East Java's economic growth performance in 2019 is high, 5.52%, but it is still followed by a high poverty rate of 10.37%. The means years of school (MYS) of population is still 8.21 years, or equivalent of second grade of junior high school. From 38 regencies, only 5 regions have per capita income higher than the national per capita. Based on HDI indicators found 14 districts need affirmative policy, and using poverty indicators above 13%, there are 10 districts which need affirmative policy. The results of the study show that government of East Java has prospect to implement the affirmative policy in three forms: First through the Financial Aid expenditure (Bantuan Keuangan) transferred to the district/city account, second through the Grant Aid (Bantuan Hibah) which is directly transferred to school accounts, and the third through regulation of quality assurance for schools in remote area.

International differences in labor productivity: Role of capital, technological level and resource rent

2016 ◽  
pp. 67-93 ◽  
Author(s):  
A. Zaytsev
Keyword(s):  
Labor Productivity ◽  
Developed Countries ◽  
Resource Rent ◽  
Per Capita Gdp ◽  
Technological Level ◽  
Per Capita ◽  
Oil Sector ◽  
Population Ratio ◽  
Gdp Gap ◽  
Productivity Gap

Using level accounting methodology this article examines sources of per capita GDP and labor productivity differences between Russia and developed and developing countries. It considers the role played by the following determinants in per capita GDP gap: per hour labor productivity, number of hours worked per worker and labor-population ratio. It is shown that labor productivity difference is the main reason of Russia’s lagging behind. Factors of Russia’s low labor productivity are then estimated. It is found that 33-39% of 2.5-5-times labor productivity gap (estimated for non-oil sector) between Russia and developed countries (US, Canada, Germany, Norway) is explained by lower capital-to-labor ratio and the latter 58-65% of the gap is due to lower technological level (multifactor productivity). Human capital level in Russia is almost the same as in developed countries, so it explains only 2-4% of labor productivity gap.

Long Run Money Neutrality: The Case of Guatemala

2005 ◽  
pp. 127-138 ◽  
Author(s):  
Frederick H. Wallace
Keyword(s):  
Neutrality Test ◽  
Per Capita Gdp ◽  
Real Gdp ◽  
Long Run ◽  
Per Capita

The Fisher and Seater (1993) methodology is used to test for the long run neutrality of money in Guatemala, 1950-2001. Real GDP, real per capita GDP, and the money measures, M1 and M2, are integrated of order one [1(1)]. Given these orders of integration, the Fisher-Seater neutrality test can be applied. The evidence suggests that M1 and M2 are neutral with respect to real GDP. Furthermore, the test indicates that M1, but not M2, is neutral with respect to real per capita GDP as well.

scholarly journals Do Military Expenditure and Conflict Affect Economic Growth in Sri Lanka? Evidence from the ARDL Bounds Test Approach

2016 ◽  
Vol 8 (3) ◽  
pp. 1
Author(s):  
Abdul Rasheed Sithy Jesmy ◽  
Mohd Zaini Abd Karim ◽  
Shri Dewi Applanaidu
Keyword(s):  
Growth Rate ◽  
Civil War ◽  
Sri Lanka ◽  
Military Expenditure ◽  
Gdp Growth ◽  
Per Capita Gdp ◽  
Long Run ◽  
Gdp Growth Rate ◽  
Per Capita ◽  
Bounds Test

Conflicts in the form of civil war, ethnic tensions and political discord are of enduring concern and a major bottleneck to economic development in Sri Lanka. Three decades of civil war and unethical political culture have caused severe economic problems for the country, including slower rate of growth and a huge defence expenditure. The aim of this study is to examine the effect of military expenditure and conflict on per capita GDP growth rate in Sri Lanka from 1973 to 2014 using the Solow growth model and ARDL bounds test approach. The results of the bounds test are highly significant and lead to cointegration. The negative and significant coefficients of the error correction term illustrate the expected convergence process in the long-run dynamic of per capita GDP. The estimated empirical results show that, the coefficients of military expenditure and conflict are negative and statistically significant in the short-run as well as in the long-run in determining per capita GDP growth rate in Sri Lanka. Hence, it is critically important to take necessary action to decrease military expenditure and provide an efficient political solution to the problem of minorities, specifically in the post-war period.

Railroad Integration and Uneven Development on the European Periphery, 1870–1910

2021 ◽  
Vol 45 (2) ◽  
pp. 261-289
Author(s):  
Eduard J. Alvarez-Palau ◽  
Alfonso Díez-Minguela ◽  
Jordi Martí-Henneberg
Keyword(s):  
Economic Development ◽  
Positive Impact ◽  
Data Set ◽  
Per Capita Gdp ◽  
Catching Up ◽  
Nation States ◽  
Railroad Network ◽  
Per Capita ◽  
European Periphery ◽  
The Relationship

AbstractThis study explores the relationship between railroad integration and regional development on the European periphery between 1870 and 1910, based on a regional data set including 291 spatial units. Railroad integration is proxied by railroad density, while per capita GDP is used as an indicator of economic development. The period under study is of particular relevance as it has been associated with the second wave of railroad construction in Europe and also coincides with the industrialization of most of the continent. Overall, we found that railroads had a significant and positive impact on the growth of per capita GDP across Europe. The magnitude of this relationship appears to be relatively modest, but the results obtained are robust with respect to a number of different specifications. From a geographical perspective, we found that railroads had a significantly greater influence on regions located in countries on the northern periphery of Europe than in other outlying areas. They also helped the economies of these areas to begin the process of catching up with the continent’s industrialized core. In contrast, the regions on the southern periphery showed lower levels of economic growth, with this exacerbating the preexisting divergence in economic development. The expansion of the railroad network in them was unable to homogenize the diffusion of economic development and tended to further benefit the regions that were already industrialized. In most of the cases, the capital effect was magnified, and this contributed to the consolidation of newly created nation-states.

Sign in / Sign up

Export Citation Format

Share Document