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Poverty, Growth and Inequality in Developing Countries

Author

Listed:
  • Housseima Guiga

    (Faculty of Economic Sciences and Management of Tunis,Tunis El Manar University, TUNISIA.)

  • Jaleleddine Ben Rejeb

    (, Higher Institute of Management of Sousse, University of Sousse, TUNISIA.)

Abstract

The purpose of this paper is to assess the position of some developing countries in relation to different theories about the relationship between poverty, growth and inequality. We conducted an econometric analysis through a study using panel data from 52 developing countries over the period 1990-2005, to determine the main sources of poverty reduction and show the interdependence between poverty, inequality and growth by using a system of simultaneous equations. This method is rarely applied econometric panel data and especially in the case studies on poverty. Our results indicate that the state investment in social sectors such as education and health and improving the living conditions of the rural population can promote economic growth and reducing inequality. Therefore, the Kuznets hypothesis is based on a relationship between economic growths to income inequality is most appropriate.

Suggested Citation

  • Housseima Guiga & Jaleleddine Ben Rejeb, 2012. "Poverty, Growth and Inequality in Developing Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 2(4), pages 470-479.
  • Handle: RePEc:eco:journ1:2012-04-9
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    References listed on IDEAS

    as
    1. Alberto Alesina & Dani Rodrik, 1994. "Distributive Politics and Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 109(2), pages 465-490.
    2. Meng, Xin & Gregory, Robert & Wang, Youjuan, 2005. "Poverty, inequality, and growth in urban China, 1986-2000," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 710-729, December.
    3. Ravallion, Martin, 2001. "Growth, Inequality and Poverty: Looking Beyond Averages," World Development, Elsevier, vol. 29(11), pages 1803-1815, November.
    4. repec:tpr:qjecon:v:109:y:1994:i:2:p:465-90 is not listed on IDEAS
    5. Roman Arjona & Maxime Ladaique & Mark Pearson, 2003. "Social Protection and Growth," OECD Economic Studies, OECD Publishing, vol. 2002(2), pages 7-45.
    6. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June.
    7. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
    8. Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, vol. 57(2), pages 259-287.
    9. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    10. Kraay, Aart, 2006. "When is growth pro-poor? Evidence from a panel of countries," Journal of Development Economics, Elsevier, vol. 80(1), pages 198-227, June.
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    More about this item

    Keywords

    Audit Quality; Earnings Management; Legal Enforcement;

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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