IDEAS home Printed from https://ideas.repec.org/a/chi/journl/v2y2013i4p39-52.html
   My bibliography  Save this article

Regional multipliers of social accounting matrix and the effective eradication of poverty

Author

Listed:
  • Wannaphong Durongkaveroj and Rossarin Osathanunkul

    (Chiang Mai University)

  • Rossarin Osathanunkul

    (Chiang Mai University)

Abstract

Halving poverty became a global responsibility. As decreased poverty was typically related with an increased income, policies relevant to economic growth had been widely implemented throughout all regions. The purpose of this study was to simulate the effects of exogenously macroeconomic shocks on regional poverty through SAM multiplier in various groups of developing country around the world. The study revealed that to eradicate poverty in each region required exogenous shock or income injection through an increase in foreign' s demand or in-cash subsidy from government or international agents. Moreover, the response of poverty to given shock was relatively high in Asia due to a strong inter-industry linkage throughout the economy while relatively low in Emerging Europe due to high income level and initially low poverty rate. Additionally, light manufacturing sector should be supported in Asia in order to capably reduce the destitution. Also, a policy aimed at encouraging processed food sector was an effective tool to raise citizen's living standard in Emerging Europe; Latin America; and Sub-Saharan Africa, Middle East, and North America. Thus, importance of integrated policy will be recognized as a motivator of economic development.

Suggested Citation

  • Wannaphong Durongkaveroj and Rossarin Osathanunkul & Rossarin Osathanunkul, 2013. "Regional multipliers of social accounting matrix and the effective eradication of poverty," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 2(4), pages 39-52, December.
    • Handle: RePEc:chi:journl:v:2:y:2013:i:4:p:39-52
    as

    Download full text from publisher

    File URL: http://www.jyoungeconomist.com/images/stories/EEQEL_V2_N4_December_2013_pp_039_052_Wannaphong.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Francois Bourguignon & Luiz A. Pereira da Silva, 2003. "The Impact of Economic Policies on Poverty and Income Distribution : Evaluation Techniques and Tools," World Bank Publications - Books, The World Bank Group, number 15090, December.
    2. Ravallion, Martin & Chen, Shaohua, 1997. "What Can New Survey Data Tell Us about Recent Changes in Distribution and Poverty?," The World Bank Economic Review, World Bank, vol. 11(2), pages 357-382, May.
    3. Simon Kuznets, 1934. "National Income, 1929-1932," NBER Books, National Bureau of Economic Research, Inc, number kuzn34-1, August.
    4. Yuka Takeda, 2009. "Economic Growth and its Effect on Poverty Reduction in Russia," Global COE Hi-Stat Discussion Paper Series gd08-075, Institute of Economic Research, Hitotsubashi University.
    5. McDonald, Scott & Thierfelder, Karen, 2004. "Deriving A Global Social Accounting Matrix From Gtap Versions 5 And 6 Data," Technical Papers 28716, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Williamson, John, 2000. "What Should the World Bank Think about the Washington Consensus?," The World Bank Research Observer, World Bank, vol. 15(2), pages 251-264, August.
    7. Hertel, Thomas & Monika Verma & Maros Ivanic & Ana R. Rios, 2011. "GTAP-POV: A Framework for Assessing the National Poverty Impacts of Global Economic and Environmental Policies," GTAP Technical Papers 3731, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    8. Ravallion, Martin, 2001. "Growth, Inequality and Poverty: Looking Beyond Averages," World Development, Elsevier, vol. 29(11), pages 1803-1815, November.
    9. Francisco Javier De Miguel-Velez & Jesus Perez-Mayo, 2008. "Poverty Reduction and SAM Multipliers: An Evaluation of Public Policies in a Regional Framework," European Planning Studies, Taylor & Francis Journals, vol. 18(3), pages 449-466, December.
    10. Basu, Kaushik & Foster, James E, 1998. "On Measuring Literacy," Economic Journal, Royal Economic Society, vol. 108(451), pages 1733-1749, November.
    11. Kalwij, A.S. & Verschoor, A., 2004. "How Good is Growth for the Poor? The Role of Initial Income Distribution in Regional Diversity in Poverty Trends," Discussion Paper 2004-115, Tilburg University, Center for Economic Research.
    12. Adams, Richard H. Jr., 2003. "Economic growth, inequality, and poverty : findings from a new data set," Policy Research Working Paper Series 2972, The World Bank.
    13. Squire, Lyn, 1993. "Fighting Poverty," American Economic Review, American Economic Association, vol. 83(2), pages 377-382, May.
    14. Haroon Jamal, 2006. "Does Inequality Matter for Poverty Reduction? Evidence from Pakistan’s Poverty Trends," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(3), pages 439-459.
    15. Burfisher,Mary E., 2011. "Introduction to Computable General Equilibrium Models," Cambridge Books, Cambridge University Press, number 9780521766968, December.
    16. World Bank, 2012. "World Development Indicators 2012," World Bank Publications - Books, The World Bank Group, number 6014, December.
    17. Edward F. Buffie & Manoj Atolia, 2008. "Trade Policy, Poverty, and Development in a Dynamic General Equilibrium Model for Zambia," Working Papers wp2008_11_04, Department of Economics, Florida State University.
    18. Adams, Philip D., 2005. "Interpretation of results from CGE models such as GTAP," Journal of Policy Modeling, Elsevier, vol. 27(8), pages 941-959, November.
    19. Jeeranan Techanan & Komsan Suriya, 2012. "Effect of income distribution on poverty reduction after the Millennium," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 1(4), pages 169-179, December.
    20. Timothy Besley & Robin Burgess, 2003. "Halving Global Poverty," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 3-22, Summer.
    21. durongkaveroj, wannaphong, 2013. "Impacts of Exogenous Shocks Using GTAP," MPRA Paper 52216, University Library of Munich, Germany.
    22. Kitwiwattanachai, Anyarath & Nelson, Doug & Reed, Geoffrey, 2010. "Quantitative impacts of alternative East Asia Free Trade Areas: A Computable General Equilibrium (CGE) assessment," Journal of Policy Modeling, Elsevier, vol. 32(2), pages 286-301, March.
    23. Harslett, Philip, 2013. "The GTAP Data Base Construction Procedure," GTAP Working Papers 4289, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    24. Kakwani, Nanak, 1993. "Poverty and Economic Growth with Application to Cote d'Ivoire," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(2), pages 121-139, June.
    25. Jana Asher & Beth Osborne Daponte, 2010. "A Hypothetical Cohort Model of Human Development," Human Development Research Papers (2009 to present) HDRP-2010-40, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    26. D'Haese, Marijke F.C. & Lecomte, Philippe & Alary, Veronique & D'Haese, Luc & Schipper, Robert A., 2008. "Going micro: Analysing SAM multipliers for the dairy chain on Reunion Island," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43934, European Association of Agricultural Economists.
    27. Burfisher,Mary E., 2011. "Introduction to Computable General Equilibrium Models," Cambridge Books, Cambridge University Press, number 9780521139779, December.
    28. Thaiprasert, Nalitra, 2006. "Rethinking the Role of Agriculture and Agro-Industry in the Economic Development of Thailand: Input-Output and CGE Analyses (Ph.D. Dissertation)," MPRA Paper 1089, University Library of Munich, Germany.
    29. Harslett, Philip, 2013. "The GTAP Data Base Construction Procedure," Working papers 283494, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    30. Breisinger, Clemens & Thomas, Marcelle & Thurlow, James, 2009. "Social accounting matrices and multiplier analysis: An introduction with exercises," Food security in practice technical guide series 5, International Food Policy Research Institute (IFPRI).
    31. Fugazza, Marco & Maur, Jean-Christophe, 2008. "Non-tariff barriers in CGE models: How useful for policy?," Journal of Policy Modeling, Elsevier, vol. 30(3), pages 475-490.
    32. Thorbecke, Erik & Jung, Hong-Sang, 1996. "A multiplier decomposition method to analyze poverty alleviation," Journal of Development Economics, Elsevier, vol. 48(2), pages 279-300, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. durongkaveroj, wannaphong, 2014. "Remedy of Poverty," MPRA Paper 54665, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. durongkaveroj, wannaphong, 2014. "Growth or development: experience from Latin America," MPRA Paper 54481, University Library of Munich, Germany, revised 16 Mar 2014.
    2. durongkaveroj, wannaphong, 2014. "SAM Multiplier and its Application to Total Poverty Gap," MPRA Paper 53988, University Library of Munich, Germany.
    3. Kalwij, A.S. & Verschoor, A., 2004. "How Good is Growth for the Poor? The Role of Initial Income Distribution in Regional Diversity in Poverty Trends," Other publications TiSEM 199ed5a4-ad69-4cf9-81d7-b, Tilburg University, School of Economics and Management.
    4. Grabiella Berloffa & Maria Luigia Segnana, 2004. "Trade, inequality and pro-poor growth: Two perspectives, one message?," Department of Economics Working Papers 0408, Department of Economics, University of Trento, Italia.
    5. Leone Walters & Heinrich R. Bohlmann & Matthew W. Clance, 2016. "The Impact of the COMESA-EAC-SADC Tripartite Free Trade Agreement on the South African Economy," Working Papers 201669, University of Pretoria, Department of Economics.
    6. Bluhm R & Crombrugghe D.P.I. de & Szirmai A., 2013. "The pace of poverty reduction - A fractional response approach," MERIT Working Papers 2013-051, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. durongkaveroj, wannaphong & osathanunkul, rossarin, 2014. "การลดความยากจนและการพัฒนาเศรษฐกิจในกลุ่มประเทศต่างๆ [Poverty Reduction and Economic Development in various groups of country]," MPRA Paper 54433, University Library of Munich, Germany, revised 05 Feb 2014.
    8. Vincenzo Lombardo, 2011. "Growth and Inequality Effects on Poverty Reduction in Italy," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 241-280.
    9. Bluhm, Richard & de Crombrugghe, Denis & Szirmai, Adam, 2018. "Poverty accounting," European Economic Review, Elsevier, vol. 104(C), pages 237-255.
    10. Ngepah, Nicholas & Espoir, Delphin Kamanda, 2018. "Binding constraints of economic growth on poverty: A dynamic panel data analysis," MPRA Paper 92136, University Library of Munich, Germany, revised 15 Oct 2018.
    11. Enisan Akinlo, Anthony, 2021. "Dynamic Linkages Between Government-Interventionists’ Policies, Growth, Inequality And Poverty In Nigeria," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 8(2), pages 45-64, June.
    12. Adriaan Kalwij & Arjan Verschoor, 2010. "A Decomposition of Poverty Tre across Regions: The Role of Variation in the Income and Inequality Elasticities of Poverty," Working Papers id:2611, eSocialSciences.
    13. Rasmus Heltberg, 2002. "The Poverty Elasticity of Growth," WIDER Working Paper Series DP2002-21, World Institute for Development Economic Research (UNU-WIDER).
    14. Martin Ravallion, 2005. "A poverty-inequality trade off?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 3(2), pages 169-181, August.
    15. Richard Bluhm & Denis de Crombrugghe & Adam Szirmai, 2016. "Poverty Accounting. A fractional response approach to poverty decomposition," Working Papers 413, ECINEQ, Society for the Study of Economic Inequality.
    16. durongkaveroj, wannaphong, 2014. "CGE analysis of trade liberalization in Thailand," MPRA Paper 55191, University Library of Munich, Germany.
    17. durongkaveroj, wannaphong, 2014. "Remedy of Poverty," MPRA Paper 54665, University Library of Munich, Germany.
    18. Ramón E. Key-Hernández & Claudina Villarroel, 2014. "Domestic impact of production cuts in OPEC countries: The cases of Nigeria and Venezuela," EcoMod2014 7007, EcoMod.
    19. Kalwij, Adriaan & Verschoor, Arjan, 2007. "Not by growth alone: The role of the distribution of income in regional diversity in poverty reduction," European Economic Review, Elsevier, vol. 51(4), pages 805-829, May.
    20. Yerrabati, Sridevi, 2022. "Does vulnerable employment alleviate poverty in developing countries?," Economic Modelling, Elsevier, vol. 116(C).

    More about this item

    Keywords

    Social Account Matrix Multiplier; Poverty; Economic Development;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:chi:journl:v:2:y:2013:i:4:p:39-52. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Komsan Suriya (email available below). General contact details of provider: https://edirc.repec.org/data/fecmuth.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.