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Effects Of Growth And Inequality

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  • Faouzi SBOUI

    (Unit of Applied Economics Research (UAER) - FEM of Sfax, Tunisia)

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    Abstract

    This research seeks to evaluate the effects of growth and inequality on the dynamics of poverty in Tunisia from 1985 to 2005. To achieve this aim, two types of analyses are discussed. First, we proceed with the decomposition of changes in poverty into contribution of growth and a contribution due to the redistribution, according to the decomposition approaches suggested by Datt and Ravallion (1992) and Kakwani (1997). Secondly, the Pro-Poor Growth Index, developed by Kakwani and Pernia (2001), and the Poverty Equivalent Growth Rate, suggested by Kakwani and Son (2002), are applied to assess the degree of pro-poor growth with an emphasis on changes in distribution. The analysis of grouped data generated from surveys on Budget, Consumption and Household Standard of Living, held by the National Institute of Statistics (NIS) shows that the receding of poverty in Tunisia is mainly due to economic growth. However, because of changes in inequality, which came along with the process of growth, the latter was not strictly pro-poor. In fact, the rich benefit proportionally more than the poor from growth.

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    File URL: http://region-developpement.univ-tln.fr/fr/pdf/R35/4_SBOUI-1.pdf
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    Bibliographic Info

    Article provided by Region et Developpement, LEAD, Universite du Sud - Toulon Var in its journal Région et Développement.

    Volume (Year): 35 (2012)
    Issue (Month): ()
    Pages: 57-80

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    Handle: RePEc:tou:journl:v:35:y:2012:p:57-80

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    Related research

    Keywords: POVERTY; GROWTH; INEQUALITY; PRO-POOR GROWTH; TUNISIA;

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    References

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    1. 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.
    2. Jean-Pierre Lachaud, 2003. "La croissance économique en Afrique sub-saharienne est-elle "pro-pauvres" ? Une investigation appliquée au Burkina Faso," Documents de travail 83, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
    3. Klasen, Stephan, 2000. "Measuring Poverty and Deprivation in South Africa," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(1), pages 33-58, March.
    4. Sami Bibi, 2005. "When is Economic Growth Pro-Poor? Evidence from Tunisia," Cahiers de recherche 0522, CIRPEE.
    5. Dorothée Boccanfuso & Samuel Tambi Kaboré, 2004. "Croissance, inégalité et pauvreté dans les années quatre-vingt-dix au Burkina Faso et au Sénégal," Revue d’économie du développement, De Boeck Université, vol. 18(2), pages 9-35.
    6. Bhagwati, Jagdish N., 1988. "Poverty and public policy," World Development, Elsevier, vol. 16(5), pages 539-555, May.
    7. Xavier Sala-i-Martin, 2002. "The World Distribution of Income (estimated from Individual Country Distributions)," NBER Working Papers 8933, National Bureau of Economic Research, Inc.
    8. Jean-Pierre Lachaud, 1995. "Croissance économique, pauvreté et inégalité des revenus en Afrique subsaharienne: analyse comparative," Documents de travail 11, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
    9. Son, Hyun Hwa, 2004. "A note on pro-poor growth," Economics Letters, Elsevier, vol. 82(3), pages 307-314, March.
    10. Dollar, David & Kraay, Aart, 2001. "Growth is good for the poor," Policy Research Working Paper Series 2587, The World Bank.
    11. 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 121-39, June.
    12. Sami Bibi, 2006. "Growth with Equity is Better for the Poor," Cahiers de recherche 0640, CIRPEE.
    13. Jean-Pierre Cling & Philippe De Vreyer & Mireille Razafindrakoto & François Roubaud, 2003. "La croissance ne suffit pas pour réduire la pauvreté : le rôle des inégalités," Working Papers DT/2003/04, DIAL (Développement, Institutions et Mondialisation).
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