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A Note on Economic Growth, Inequality, and Poverty in the Philippines

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  • Tabuga, Aubrey D.
  • Reyes, Celia M.
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    Abstract

    This paper examines the relationship among poverty, economic growth, and inequality by decomposing poverty changes at subnational levels. The results were examined against the performances of the different economic sectors in the regions to understand the relationships while accounting for the nature of growth. Moreover, the poverty elasticity of output growth was estimated using regional-level data in 2003, 2006, and 2009. We learned that while the rate of growth matters a lot in poverty reduction, the redistribution of income matters as well. More importantly, we find that, at a given rate of growth, the response of poverty rate to growth is higher when income distribution is less unequal.

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    File URL: http://serp-p.pids.gov.ph/serp-p/download.php?d=5035&s=3
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    Bibliographic Info

    Paper provided by Philippine Institute for Development Studies in its series Discussion Papers with number DP 2011-30.

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    Length: 41
    Date of creation: 2011
    Date of revision:
    Handle: RePEc:phd:dpaper:dp_2011-30

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    Keywords: poverty; decomposition; inequality; Philippines; GLS regression; random effects; Gini decomposition;

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    1. Arsenio M. Balisacan, 2007. "Why Does Poverty Persist in the Philippines? Facts, Fancies, and Policies," Agriculture and Development Discussion Paper Series, Southeast Asian Regional Center for Graduate Study and Research in Agriculture 2007-1, Southeast Asian Regional Center for Graduate Study and Research in Agriculture.
    2. Heltberg, Rasmus, 2002. "The Poverty Elasticity of Growth," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
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