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Poverty, Growth, Structural Change and Social Inclusion Programs: A Regional Analysis of Peru


  • Mario D. TELLO


Under a relative liberal market model of growth and social inclusion programs, in the last decade Peru has had one of highest rate of economic growth and declining levels of poverty and its severity in Latin America. However, more than 60% of the labor force in its 24 regions is still employed in informal activities of low productivity indicating absence of a significant structural change. This paper presents evidence suggesting that such declining rates may be explained by the regional labor reallocation measure of structural change between informal and formal activities rather than social inclusion programs and regional economic growth.

Suggested Citation

  • Mario D. TELLO, 2015. "Poverty, Growth, Structural Change and Social Inclusion Programs: A Regional Analysis of Peru," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 15(2), pages 59-74.
  • Handle: RePEc:eaa:eerese:v:15:y2015:i:2_4

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    References listed on IDEAS

    1. Escobal, Javier, 2001. "The Determinants of Nonfarm Income Diversification in Rural Peru," World Development, Elsevier, vol. 29(3), pages 497-508, March.
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    4. Paolo Verme, 2010. "A structural analysis of growth and poverty in the short-term," Journal of Developing Areas, Tennessee State University, College of Business, vol. 43(2), pages 19-39, January-M.
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    6. Ravallion, Martin, 2001. "Growth, Inequality and Poverty: Looking Beyond Averages," World Development, Elsevier, vol. 29(11), pages 1803-1815, November.
    7. Lavopa, Alejandro & Szirmai, Adam, 2012. "Industrialization, employment and poverty," MERIT Working Papers 081, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    8. International Monetary Fund, 1997. "Sierra Leone; Recent Economic Developments," IMF Staff Country Reports 97/47, International Monetary Fund.
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    10. Banerjee, Abhijit V & Duflo, Esther, 2003. "Inequality and Growth: What Can the Data Say?," Journal of Economic Growth, Springer, vol. 8(3), pages 267-299, September.
    11. Kuznets, Simon, 1973. "Modern Economic Growth: Findings and Reflections," American Economic Review, American Economic Association, vol. 63(3), pages 247-258, June.
    12. Seth W.Norton, 2002. "Economic Growth and Poverty:In Search of Trickle-Down," Cato Journal, Cato Journal, Cato Institute, vol. 22(2), pages 263-275, Fall.
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    More about this item


    Structural change; Peru; Poverty; Growth; Informal activities.;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty


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