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

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.

2015 ◽  
Vol 7 (3) ◽  
pp. 5-25
Author(s):  
Samuel Kobina Annim ◽  
William Gabriel Brafu-Insaidoo

This study assesses the poverty and inequality situation in Ghana using the last four rounds of the Ghana Living Standards Survey (1991–2013). The FGT poverty incidence, Gini and Generalized Entropy inequality measures and regression analysis are used to examine trends, spatial distribution and correlation between poverty inequality and poverty. e ndings suggest that the proportion of population dened as income-poor but non-poor in consumption have increased overtime. Also, a decline in wealth inequality is observed, but rural inequality overtime has increased to outpace urban inequality. Minimizing wealth inequality especially, in rural areas, has the potential of accelerating poverty reduction in Ghana.


Author(s):  
Abebe Shimeles

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.


2003 ◽  
Vol 42 (4II) ◽  
pp. 879-892 ◽  
Author(s):  
Aliya H. Khan ◽  
Ali Shan Azhar

Two extremely significant empirical questions on the relationship between growth, distribution and poverty have remained the focus of attention for researchers and academicians. First, how does a change in aggregate poverty reflect intrasectoral gains/losses versus intersectoral shifts in population? Second, how much of an observed change in poverty can be attributed to the changes in the distribution of income, as distinct from growth in average incomes? Standard inequality measures like the Gini coefficient can be misleading in this context. At any rate, the change in an inequality measure can be a poor guide to its quantitative impact on poverty. Ravallion and Huppi (1991) proposed decomposition formulae to throw light on the contributions of sectoral gains and population shifts (on the one hand) and economic growth and changes in inequality (on the other) to aggregate changes in poverty. They found that both population shifts and gains to the urban and rural sectors alleviated aggregate poverty in Indonesia over the 1984-87 period. In addition, they obtained estimates of the relative contributions of growth and greater equity to poverty alleviation in Indonesia. Datt and Ravallion (1992) extended the analysis to study poverty in Brazil and India during the 1980s. Kakwani (1993) explored the relation between economic growth and poverty for Cote d’Ivoire from 1980-85. He developed his own methodology to measure separately the impact of changes in average income and income inequality on poverty. Kakwani (2000) applied the same methodology to analyse changes in poverty in Thailand covering the period from 1988-94. Recently, Contreas (2003) examined the evolution of poverty and inequality in Chile between 1990 and 1996. Using the “Datt-Ravallion decomposition”, he computed that economic growth accounted for over 85 percent of the poverty reduction in Chile.


2003 ◽  
Vol 42 (4II) ◽  
pp. 783-791 ◽  
Author(s):  
Qazi Masood Ahmed ◽  
Muhammad Sabir

An agenda of economic reform encompassing a broad range of structural adjustment policies (SAP) is underway in Pakistan since 1987-88. These policies have an adverse impact on the pace of economic growth and created more poverty and inequality in the country [see Bengali and Ahmed (2002); Kemal (2003)]. These studies argues that during the last fifteen years each government is trying to stabilise the economy even at the cost of economic growth and delivery of social services. The negative impact of stabilisation policies on economic growth of the country is reflected in the decline of GDP growth from an average annual growth of 4.6 percent during 1990s as compared to 6.5 percent during 1980s. Similarly, negligence of social services delivery is reflected in the recent UNDP Report (2003), which, show that the ranking of Pakistan has slipped from 136 to 141 along with the decline in many other social sector statistics. The top government officials now also recognise these facts and the relapse of growth oriented policy can be heard more often. Trend in public finance statistics of the country clearly indicate that one of the important victim of stabilisation policies are the expenditures of provincial governments. In last several years the significant portion of onus of containment of fiscal deficit has been shifted towards the provincial governments. The onus of containment of fiscal deficit by all four provincial governments during the last decade has increased from 18 percent to 50 percent, which has devastating impact on the service provision and poverty reduction.


Author(s):  
Gustavo A. Marrero ◽  
Luis Servén

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.


Energies ◽  
2021 ◽  
Vol 14 (13) ◽  
pp. 3864
Author(s):  
Qiucheng Li ◽  
Jiang Hu ◽  
Bolin Yu

The residential sector has become the second largest energy consumer in China. Urban residential energy consumption (URE) in China is growing rapidly in the process of urbanization. This paper aims to reveal the spatiotemporal dynamic evolution and influencing mechanism of URE in China. The spatiotemporal heterogeneity of URE during 2007–2018 is explored through Kernel density estimation and inequality measures (i.e., Gini coefficient, Theil index, and mean logarithmic deviation). Then, with several advantages over traditional index decomposition analysis approaches, the Generalized Divisia Index Method (GDIM) decomposition is employed to investigate the impacts of eight driving factors on URE. Furthermore, the national and provincial decoupling relationships between URE and residential income increase are studied. It is found that different provinces’ URE present a significant agglomeration effect; the interprovincial inequality in URE increases and then decreases during the study period. The GDIM decomposition results indicate the income effect is the main positive factor driving URE. Besides, urban population, residential area, per capita energy use, and per unit area energy consumption positively influence URE. By contrast, per capita income, energy intensity, and residential density have negative effects on URE. There is evidence that only three decoupling states, i.e., weak decoupling, strong decoupling, and expansive negative decoupling, appear in China during 2007–2018. Specifically, weak decoupling is the dominant state among different regions. Finally, some suggestions are given to speed up the construction of energy-saving cities and promote the decoupling process of residential energy consumption in China. This paper fills some research gaps in urban residential energy research and is important for China’s policymakers.


2007 ◽  
Vol 9 (4) ◽  
pp. 304-309 ◽  
Author(s):  
Lan. Gien ◽  
Sharon Taylor ◽  
Ken Barter ◽  
Nguyen Tiep ◽  
Bui X. Mai ◽  
...  

Author(s):  
Armando Barrientos

This chapter examines the role that public policy initiatives—specifically anti-poverty transfers—have played in the reduction of poverty and inequality in Brazil. A number of anti-poverty initiatives are considered in turn, and not just the widely known Bolsa Familia conditional cash transfer program. The analysis establishes that such transfers—including conditional cash transfers—have proved surprisingly effective, even helping to tackle long-standing income inequality. It is recognized that explicit anti-poverty initiatives were not the only drivers of the reduced incidence of poverty and inequality: factors such as growth and improved access to labor markets also played a role. However, progress is now threatened by the recent economic and political crisis.


Author(s):  
Sherine Fathy Mansour ◽  
Dalia Elsaid Abozaid

This study examines the impact of New Integrated Management Package (IMP) adoption on income and poverty among fodder farming household in Sahl El-Tina. The IMP such as Rate, time, and methods of nitrogen fertilization and other fertilization, Leaching requirements for some crops, Intercropping system, Use of suitable crop genotype/variety, Use of modern irrigation systems or modified systems to save water, date, rate and method of planting. The study aims mainly to improve the lives of small farmers through the level of dissemination and application of cultivation techniques forage crops tolerant to salinity through develop and disseminate technologies packages of forage production. And reducing their probability of falling below the poverty line. Therefore suggest that intensification of the investment on IMP dissemination is a reasonable policy instrument to raise incomes and reduce poverty among fodder farming household. It used instrumental variables (IV)-based estimator to estimate the Local Average Treatment Effect (LATE) of adoption of IMP on income and poverty reduction, using cross-sectional data of 200 farmers from Shal El-Tina. The findings reveal a robust positive and significant impact of IMP adoption on farm household income and welfare measured by per capita expenditure and poverty reduction. Specifically, the empirical results suggest that adoption of IMP raises household per capita expenditure and income by an average of 529.27$ and 1371$ in Shal El-Tina per cropping season respectively, thereby reducing their probability of falling below the poverty line. Therefore suggest that intensification of the investment on IMP dissemination is a reasonable policy instrument to raise incomes and reduce poverty among fodder farming household, although complementary measures are also needed. The incidence of poverty was higher among non-IMP adopters (55.2%) than IMP adopters (49.5%). In addition, both the depth and severity of poverty were also higher (20.85% and 15.42%) among non-adopters than the adopters (18.48% and 9.88%). All three poverty measures indicate that poverty was more prevalent and severe among non-adopters compared to adopters.


2020 ◽  
Vol 10 (2) ◽  
pp. 482
Author(s):  
Melly Anggraeni ◽  
Hardi Warsono ◽  
Ida Hayu Dwimawanti

In the context of poverty reduction, the Government mandates the distribution of Non-Cash Food Assistance. Non-Cash Food Aid, hereinafter abbreviated as BPNT, is a policy of the Central Government in the form of food social assistance in the form of non-cash given to Beneficiary Families (KPM) every month through electronic accounts and is only used to buy food in E-warong in collaboration with banks. In BPNT distribution management in Rembang Regency, the planning aspect begins with the data collection and validation of population data, with the aim of channeling BPNT on target. Organizing is done in coordination between the Ministry of Social Affairs, Social Services, Women's Empowerment and Family Planning District. Rembang, BNI, and e-warong agents in each district. The implementation was carried out in stages, by distributing non-cash assistance of Rp 110,000.00 per family. Supervision is carried out in coordination with BNI, because the distribution system uses electronic money. The obstacle faced is that there are still residents who are eligible for assistance, but have not been distributed by BPNT. So in the future there needs to be up to date data validation. In the future, the distribution will be more on target.


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