Does inequality constrain poverty reduction programs? Evidence from Africa
AbstractExamined in the present study is the extent to which inequality influences the effectiveness of income growth in poverty reduction, based on 1990s data for a sample of African economies. An analysis-of-covariance model is derived and estimated, with the headcount, gap, and squared gap poverty ratios serving as the respective dependent variables, and the Gini coefficient and PPP-adjusted income as explanatory variables. The study finds that the responsiveness of poverty to income is a decreasing function of inequality. The results imply a large variation across African countries in the amount of growth required to meet a unit of poverty reduction, as in the case of the MDG1, depending on the level of inequality. For efficient policymaking, therefore, a country-specific strategy with varying emphases on inequality relative to growth is warranted.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Policy Modeling.
Volume (Year): 32 (2010)
Issue (Month): 6 (November)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505735
Inequality Income growth Poverty reduction Policy African economies;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Augustin Kwasi Fosu, 2008. "Inequality and the growth-poverty nexus: specification empirics using African data," Applied Economics Letters, Taylor & Francis Journals, vol. 15(7), pages 563-566.
- Fosu, A. K., 2001. "Political instability and economic growth in developing economies: some specification empirics," Economics Letters, Elsevier, vol. 70(2), pages 289-294, February.
- Milanovic, Branko, 2003. "Is inequality in Africa really different ?," Policy Research Working Paper Series 3169, The World Bank.
- Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April.
- Adams, Richard Jr., 2004. "Economic Growth, Inequality and Poverty: Estimating the Growth Elasticity of Poverty," World Development, Elsevier, vol. 32(12), pages 1989-2014, December.
- Ravallion, Martin, 1997.
"Can high-inequality developing countries escape absolute poverty?,"
Policy Research Working Paper Series
1775, The World Bank.
- Ravallion, Martin, 1997. "Can high-inequality developing countries escape absolute poverty?," Economics Letters, Elsevier, vol. 56(1), pages 51-57, September.
- Salvatore, Dominick, 2007. "Growth, international inequalities, and poverty in a globalizing world," Journal of Policy Modeling, Elsevier, vol. 29(4), pages 635-641.
- Fields, Gary S., 1981. "Poverty, inequality, and development: A distributional approach," Journal of Policy Modeling, Elsevier, vol. 3(3), pages 295-315, October.
- Adelman, Irma, 1975. "Development Economics-A Reassessment of Goals," American Economic Review, American Economic Association, vol. 65(2), pages 302-09, May.
- Dollar, David & Kraay, Aart, 2001.
"Growth is good for the poor,"
Policy Research Working Paper Series
2587, The World Bank.
- Goldstein, Joshua S., 1985. "Basic human needs: The plateau curve," World Development, Elsevier, vol. 13(5), pages 595-609, May.
- World Bank, 2009. "World Development Indicators 2009," World Bank Publications, The World Bank, number 4367, July.
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
- Heerink, Nico & Folmer, Henk, 1994.
"Income distribution and the fulfillment of basic needs: Theory and empirical evidence,"
Journal of Policy Modeling,
Elsevier, vol. 16(6), pages 625-652, December.
- Heerink, N. & Folmer, H., 1991. "Income Distribution and the Fulfilment of Basic Needs: Theory and Empirical Evidence," Mansholt Working Papers 1991-1, Wageningen University, Mansholt Graduate School of Social Sciences.
- Hicks, Norman & Streeten, Paul, 1979. "Indicators of development: The search for a basic needs yardstick," World Development, Elsevier, vol. 7(6), pages 567-580, June.
- Ali, Ali Abdel Gadir, 1998. "Dealing with Poverty and Income Distribution Issues in Developing Countries: Cross-Regional Experiences," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 7(0), pages 77-115, December.
- Augustin Kwasi Fosu, 2011.
"Growth, Inequality, and Poverty Reduction in Developing Countries: Recent Global Evidence,"
CSAE Working Paper Series
2011-07, Centre for the Study of African Economies, University of Oxford.
- Augustin Kwasi Fosu, 2011. "Growth, Inequality, and Poverty Reduction in Developing Countries: Recent Global Evidence," Economics Series Working Papers WPS/2011-07, University of Oxford, Department of Economics.
- Augustin Kwasi Fosu, 2011. "Growth, inequality, and poverty reduction in developing countries: recent global evidence," Brooks World Poverty Institute Working Paper Series 14711, BWPI, The University of Manchester.
- Augustin Kwasi Fosu, 2011. "Growth, Inequality, and Poverty Reduction in Developing Countries: Recent Global Evidence," Working Paper Series UNU-WIDER Working Paper W, World Institute for Development Economic Research (UNU-WIDER).
- Tausch, Arno & Heshmati, Almas, 2011.
"Migration, Openness and the Global Preconditions of 'Smart Development',"
IZA Discussion Papers
6169, Institute for the Study of Labor (IZA).
- Arno Tausch & Almas Heshmati, 2012. "Migration, Openness and the Global Preconditions of "Smart Development"," Bogazici Journal of Economics and Administrative Sciences, Bogazici University, Department of Economics, vol. 26(2), pages 1-62.
- Herzer, Dierk & Vollmer, Sebastian, 2013. "Rising top incomes do not raise the tide," Journal of Policy Modeling, Elsevier, vol. 35(4), pages 504-519.
- Tausch, Arno, 2011. "Costa Rica, superstar? some reflections on the global drivers and bottlenecks of the happy planet index," MPRA Paper 33226, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.