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The Making of Pro-poor Growth

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A system of three endogenous equations is used to estimate the determinants of poverty eduction. The system incorporates: (i) the direct effect of growth and income inequality on poverty, (ii) the feedback effect of poverty on inequality and growth, and (iii) different channels through which economic policies can affect poverty reduction. Results indicate the existence of a virtuous and a vicious equilibrium. The policy mix is then critical in deciding to which of the two equilibria a country converges.

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Paper provided by School of Economics, University of Queensland, Australia in its series MRG Discussion Paper Series with number 2909.

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Handle: RePEc:qld:uqmrg6:29

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Cited by:
  1. Fabrizio Carmignani, 2011. "Development and large scale violence," Discussion Papers Series 433, School of Economics, University of Queensland, Australia.

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