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, poverty to growth, to poverty. 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 InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 36651.
Date of creation: May 2008
Date of revision: Feb 2012
growth; poverty; inequality; Sudan;
Other versions of this item:
- Hisham Mohamed Hassan Ali, 2012. "Cointegration Growth, Poverty and Inequality in Sudan," Economic Research Guardian, Weissberg Publishing, vol. 2(1), pages 70-98, May.
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
- A10 - General Economics and Teaching - - General Economics - - - General
- C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
This paper has been announced in the following NEP Reports:
- NEP-AFR-2012-02-20 (Africa)
- NEP-ALL-2012-02-20 (All new papers)
- NEP-FDG-2012-02-20 (Financial Development & Growth)
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