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Inflation, Growth, and Distribution Nexus in Post-Transition and Emerging Economies of South Asia

Author

Listed:
  • Sanjaya Acharya

    (Tribhuvan University, Kathmandu, Nepal)

  • Mohamed Ileas Mia

    (Ministry of Public Administration, Dhaka, Bangladesh)

Abstract

This study investigates the impact of inflation on poverty and income distribution in five major economies in South Asia in the period 1986-2014. Inflation reduces the poverty rate and the poverty gap as the agricultural poor largely benefit from higher agricultural prices whereas the poorest quintile of the population who are landless farmers remain in a disadvantageous position. This raises the overall level of inequality in the economy despite poverty reduction. Trade openness is still not the engine of growth in South Asia - rather it has widened the poverty gap and aggravated inequality because the poor are not well integrated to the global market as compared to the well-off groups. As a result, there has been growing inequality across the region.

Suggested Citation

  • Sanjaya Acharya & Mohamed Ileas Mia, 2020. "Inflation, Growth, and Distribution Nexus in Post-Transition and Emerging Economies of South Asia," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 3, pages 368-383, September.
    • Handle: RePEc:nwe:eajour:y:2020:i:3:p:368-383
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    income distribution; inflation; Growth; poverty; South Asia;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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