Pro-poor Growth and Policies: The Asian Experience (The Quaid-i-Azam Memorial Lecture)

2003 ◽  
Vol 42 (4I) ◽  
pp. 313-348
Author(s):  
Hafiz A. Carstens ◽  
T. Palanivel
Keyword(s):  
Poverty Reduction ◽  
Agricultural Development ◽  
Public Investment ◽  
Memorial Lecture ◽  
Asian Countries ◽  
Poor Growth ◽  
Strong Positive Relationship ◽  
Inflation Rates ◽  
Macroeconomic Determinants ◽  
The Impact

The objective of this paper is to assemble on a systematic basis the available data on Asian countries and then analyse the relationship between growth and poverty reduction in a long-term perspective, as well as the impact of different macroeconomic variables on the intensity of this relationship. The results indicate that there is not only a strong positive relationship between growth and poverty reduction, but also that this relationship is highly variable across countries and time periods. The key macroeconomic determinants of the degree of pro-poor growth appear to be the rates of employment and agricultural growth. Inflation, at least up to a certain rate, does not impact poverty negatively, while the role of exports is essentially indirect through the contribution to the overall rate of economic growth. Examination of the change in policy stance of the Asian countries during the 1990s in relation to the 1980s demonstrates that on balance the mix of policies has not been pro-poor. The apparent sacrifice of growth in pursuit of macroeconomic stability has diminished the impact on poverty reduction. Given the relatively weak trade-off between inflation and growth with regard to the impact on poverty and the fact that inflation rates are currently low in the region, it is argued that countries can be more flexible in their policy stance with regard to the adoption of more growth-oriented as opposed to stabilisation policies. In particular, a case is made for resorting to a more expansionary counter-cyclical fiscal policy, led by higher levels of public investment, supported by appropriate monetary and exchange rate policies. The paper concludes with a detailed description of the policies designed to achieve faster agricultural development and greater employment generation.

scholarly journals Where does Pro-Poor Growth Occur in Vietnam?

2015 ◽  
Vol 22 (1) ◽  
pp. 20-41
Author(s):  
Bao Nguyen Hoang
Keyword(s):  
Economic Growth ◽  
Gini Coefficient ◽  
Poverty Alleviation ◽  
Poverty Reduction ◽  
Equation System ◽  
Simultaneous Equation ◽  
Poverty Index ◽  
Poor Growth ◽  
Simultaneous Equation System ◽  
The Impact

Although Vietnam’s economic growth and poverty reduction for almost three decades have been remarkable, growth for poverty reduction is unequally distributed across the nation. The paper examines the cause of poverty and the impact of provincial economic growth on poverty alleviation, using the data of 63 provinces in Vietnam. The elasticity of poverty with respect to provincial economic growth is employed (the elasticities of headcount index, poverty gap index, and squared poverty index with respect to provincial economic growth) to identify the provinces where pro-poor growth has occurred. The elasticity of poverty with respect to provincial Gini coefficient is examined to identify the impact of expenditure inequality on poverty. The simultaneous equation system is estimated to analyze not only direct and indirect effects of the related variables, but also the causality effect between economic growth and the poverty elasticity with respect to both growth and the Gini coefficient.

scholarly journals Workers’ Remittances in Yemen: Macroeconomic Determinants and Impact on Economic Growth

2021 ◽  
Author(s):  
Essa A. Alhannom ◽  
Ghaleb S. Mushabeb
Keyword(s):  
Economic Growth ◽  
Planning Process ◽  
Host Countries ◽  
Macroeconomic Conditions ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Inflation Rates ◽  
Macroeconomic Determinants ◽  
The Impact

This study aims to examine the determinants of workers’ remittances and their impact on economic growth in Yemen. Autoregressive Distributed Lag (ARDL) bounds test to co-integration and error correction model (ECM) were applied on data covering the period from 1990 to 2014. According to the model of remittances determinants, workers’ remittances in Yemen respond to the macroeconomic conditions of both the home and host countries. It is found that, in the long-run, migrant stock and income level at the host countries are positively and strongly influence remittances level, with a feeble impact of domestic inflation rates. The effect of the home country’s income seems to be positive but insignificant in explaining the behavior of remittances level. The model of economic growth suggests that, in the long-run,  the impact of workers’ remittances appears to be positive and moderate with positive and stronger influences observed for financial development and official development assistance. Accordingly, it is recommended that a lesser weight should be given to remittances in the strategic planning process, taking into consideration the increasing potentials of the conditions in the neighboring host countries to be changed. In addition, using remittances as a means of economic growth can be enhanced by encouraging migrants to direct their savings towards productive investment activities, and via formal channels.

scholarly journals Comparative Sectoral Efficiency in the Fight Against Poverty and Unemployment in Burkina Faso

2018 ◽  
Vol 5 (2) ◽  
pp. 185
Author(s):  
Patrice Rélouendé Zidouemba
Keyword(s):  
Economic Growth ◽  
Burkina Faso ◽  
Poverty Reduction ◽  
Public Investment ◽  
Public Capital ◽  
Added Value ◽  
African Countries ◽  
Capital Productivity ◽  
Sub Saharan ◽  
The Impact

In this paper, we construct an economy-wide recursive dynamic model for Burkina Faso to explore the impact of scaling up public capital in different aggregate sectors. While several researchers emphasize the importance for sub-Saharan African countries of giving higher priority to agriculture to stimulate economic growth and reduce poverty, some authors state that non-agricultural sectors should now receive special attention following the success achieved in some countries in South Asia. These countries have indeed applied a different paradigm: a program of economic growth and poverty reduction based on non-agricultural sectors. This study aims to provide insights into this debate. It draws from the public capital productivity literature to postulate the positive productive externalities of public investment. The results show that, with the same amount of public investment, financed by the same source, public investment in agriculture yields positive impacts that are significantly higher than those yielded by investments in non-agricultural sectors (industry and services). Added value growth in non-agricultural sectors is higher under public investment in agriculture than in non-agricultural sectors.

scholarly journals The vulnerable financial issue: Capital flight in Indonesia

2021 ◽  
Vol 18 (1) ◽  
pp. 89-105
Author(s):  
Muhammad Basorudin ◽  
Harwin Dwi ◽  
Hartini Sri ◽  
Gantjang Amannullah ◽  
Hamid Rachmadani
Keyword(s):  
Trade Openness ◽  
Capital Flight ◽  
Budget Deficits ◽  
International Capital ◽  
Combined Method ◽  
Sixth Edition ◽  
Inflation Rates ◽  
Financial Issue ◽  
Macroeconomic Determinants ◽  
The Impact

Indonesia is a developing country with a high demand for capital from both domestic and international sources. However, international capital flows are needed the most. For non-Western countries, especially Indonesia, capital flight is an unfavourable financial problem. This research aims to summarise capital flight from Indonesia and analyse the impact of macroeconomic and non-macroeconomic determinants through capital flight. Macroeconomic determinants include budget deficits, economic growth, inflation rates, and exchange rates. Nonmacroeconomic determinants are the degree of trade openness, interest rate differences, and dummy ratings. The data comes from the Bank of Indonesia, OECD, Moody's, and BPS-Statistics Indonesia. The coverage of this research is the Indonesian quarter from 2010 to 2018. This period complies with the latest procedures of the sixth edition of the Balance of Payments Manual (BPM 6). In this research, the measurement of the capital flight is the World Bank's residual method, trade misinvoicing method, and combined method. This research finds that, compared with other economics, non-macroeconomics is the most influential determinant of capital flight from Indonesia.

scholarly journals Role of Trade in Growth and Poverty Reduction: A Review of Literature with Special Reference to India

2018 ◽  
Vol 4 (02) ◽  
Author(s):  
Komal . ◽  
Harinder Mohan
Keyword(s):  
International Trade ◽  
Poverty Reduction ◽  
International Market ◽  
Review Of Literature ◽  
Review Of The Literature ◽  
Firm Level ◽  
Poor Growth ◽  
Employment Effects ◽  
The Impact

The growing volumes of international trade and lowering of tariff barriers have triggered continuing debate and analysis on the impact of international trade on poverty. The United Nations has identified eradication of poverty – especially of extreme poverty – as its number one Millennium Development Goal (MDG). This paper tries to assess the relevance of trade in reducing poverty in India and promoting pro-poor growth through a survey of the existing literature and concludes that a strong performance on the international market can help reduce domestic poverty in developing countries. Through a review of the literature on this topic, the author finds that there is strong empirical evidence in favour of the growth enhancing effects of exports and trade in general. Furthermore, a number of detailed microeconomic studies using firm-level and household data show that exporting can lead to productivity, growth and directly reduce poverty through wage and employment effects.

scholarly journals Microfinance, the Role and Impact on Macroeconomic Indicators of the Country. Case study: Albania

2017 ◽  
Vol 8 (1) ◽  
pp. 161-168
Author(s):  
Esmeralda Doçi
Keyword(s):  
Financial Institutions ◽  
Poverty Reduction ◽  
Agricultural Development ◽  
Empirical Studies ◽  
Empirical Evaluation ◽  
Macroeconomic Factors ◽  
Macroeconomic Indicators ◽  
High Level ◽  
The Impact ◽  
The Relationship

Abstract Microcredit or microfinance are one of the most important novelties on development policy in the last 25 years. Most of the recent studies are based on the impact that microfinance has on poverty reduction or on the income on macroeconomic level. Due to lack of data on microfinance on a macro level, studies of their impact on poverty are limited. However, they have recently analysed the link between microeconomics and microfinance activity, which has shown significant connectivity between the operations of Micro Financial Institutions and Macroeconomic indicators.Microfinance in Albania has developed and this is demonstrated by the presence of Micro Financial Institutions which have contributed to poverty reduction and to economic development in general, and to agricultural development in particular. The purpose of the study is to analyse the importance and the relationship between microfinance and macroeconomic indicators, the impact that microfinance has on macroeconomic indicators. Based on previous literature researchers and empirical studies, this study aims to analyse empirically the relationship between the gross portofolio of MFIs and macroeconomic factors. Specifically, to analyse whether a country with high level of credit portfolio provided by Micro Financial Institutions has low poverty and macroeconomic factors taken into analysis, considering the endogeneity of the gross portfolio of Micro Fianancial Institutions. The empirical evaluation and analysis is carried out through econometric evaluation using the EViews program.

Evaluation of the impact of public investment programs on social and economic performance of territories

2019 ◽  
pp. 109-123
Author(s):  
I. E. Limonov ◽  
M. V. Nesena
Keyword(s):  
Bayesian Modeling ◽  
Positive Impact ◽  
Public Investment ◽  
Difference In Differences ◽  
The Public ◽  
Export Activity ◽  
Regional Investment ◽  
The Difference ◽  
The Impact ◽  
Development Institution

The purpose of this study is to evaluate the impact of public investment programs on the socio-economic development of territories. As a case, the federal target programs for the development of regions and investment programs of the financial development institution — Vnesheconombank, designed to solve the problems of regional development are considered. The impact of the public interventions were evaluated by the “difference in differences” method using Bayesian modeling. The results of the evaluation suggest the positive impact of federal target programs on the total factor productivity of regions and on innovation; and that regional investment programs of Vnesheconombank are improving the export activity. All of the investments considered are likely to have contributed to the reduction of unemployment, but their implementation has been accompanied by an increase in social inequality.

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