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Poverty reduction, economic growth and inequality in Africa

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  • Fassil Fanta
  • Mukti Upadhyay

Abstract

We study the relationships among economic growth, inequality and poverty. Economists agree that growth is fundamental to reducing poverty. But the links among growth, distribution and poverty is still a subject of debate because the growth elasticity of poverty seems to differ from one country to another. Using a data set for 16 African countries, based on household budget surveys, we find strong support that poverty decreases in response to economic growth, with the estimated elasticity ranging between -0.5 and -1.10. Other variables, albeit important in varying degrees, are much less significant as determinants of poverty.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 16 (2009)
Issue (Month): 18 ()
Pages: 1791-1794

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Handle: RePEc:taf:apeclt:v:16:y:2009:i:18:p:1791-1794

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Cited by:
  1. Oberdabernig, Doris A., 2013. "Revisiting the Effects of IMF Programs on Poverty and Inequality," World Development, Elsevier, vol. 46(C), pages 113-142.
  2. Perera, Liyanage Devangi H. & Lee, Grace H.Y., 2013. "Have economic growth and institutional quality contributed to poverty and inequality reduction in Asia?," MPRA Paper 52763, University Library of Munich, Germany.
  3. Tregenna, Fiona, 2011. "Halving Poverty in South Africa: Growth and Distributional Aspects," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  4. Channing Arndt & Sam Jones & Finn Tarp, 2011. "Aid Effectiveness: Opening the Black Box," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Working Paper W, World Institute for Development Economic Research (UNU-WIDER).

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