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A Class of Poverty Traps: A Theory and Empirical Tests

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Author Info
Alan Martina ()
Abstract

Comparatively low levels of health and economic institutions are present in certain countries and not in others. Implications drawn from this observation are used to modify the Solow-Swan economic growth model. Conjectures are derived from the resulting model concerning what circumstances are likely to generate a health-only poverty trap and a health-cum-institutions poverty trap. These conjectures are tested through the use of quasi-controlled experimental evidence and econometric tests based on cross-country data sets. These tests support the conjecture that this class of poverty traps exists. Certain implications follow regarding the broad design of development policy.

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Paper provided by Australian National University, College of Business and Economics, School of Economics in its series ANUCBE School of Economics Working Papers with number 2007-482.

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Length: 125 pages
Date of creation: Jul 2007
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Handle: RePEc:acb:cbeeco:2007-482

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