Cointegration Growth, Poverty and Inequality in Sudan
AbstractThis analytical review explores the links between growth, poverty and inequality in Sudan for the period 1956-2003. This paper build upon different models to investigate empirically the relationship between economic growth - as measured by GDP per capita growth- and inequality as measured by Gini coefficient (the growth, inequality and poverty triangle hypotheses), using data from the national and international sources. The paper tries to answer the following questions: i) whether growth, inequality and poverty are cointegrated, ii) whether growth Granger causes inequality, iii) and whether inequality Granger causes poverty. Finally, a VAR is constructed and impulse response functions (IRFs) are employed to investigate the effects of macroeconomic shocks. The results suggest that growth; poverty and inequality are cointegrated when poverty and inequality are the dependent variable, but are not cointegrated when growth is the dependent variable. In the long-run the causality runs from inequality, p verty to growth, and to poverty, while in the short-run causal effects, runs from poverty to growth. Thus, there is unidirectional relationship, running from growth to poverty, both in the long- run and short run.
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Bibliographic InfoArticle provided by Weissberg Publishing in its journal Economic Research Guardian.
Volume (Year): 2 (2012)
Issue (Month): 1 (May)
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Cointgration; Inequality; Poverty; Economic growth; Sudan;
Other versions of this item:
- Mohamed Hassan, Hisham, 2008. "Cointegration growth, poverty and inequality in Sudan," MPRA Paper 36651, University Library of Munich, Germany, revised Feb 2012.
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
- I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
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