Does inequality constrain poverty reduction programs? Evidence from Africa
Examined in the present study is the extent to which inequality influences the effectiveness of income growth in poverty reduction, based on 1990s data for a sample of African economies. An analysis-of-covariance model is derived and estimated, with the headcount, gap, and squared gap poverty ratios serving as the respective dependent variables, and the Gini coefficient and PPP-adjusted income as explanatory variables. The study finds that the responsiveness of poverty to income is a decreasing function of inequality. The results imply a large variation across African countries in the amount of growth required to meet a unit of poverty reduction, as in the case of the MDG1, depending on the level of inequality. For efficient policymaking, therefore, a country-specific strategy with varying emphases on inequality relative to growth is warranted.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Adams, Richard Jr., 2004. "Economic Growth, Inequality and Poverty: Estimating the Growth Elasticity of Poverty," World Development, Elsevier, vol. 32(12), pages 1989-2014, December.
- Ravallion, Martin, 1997.
"Can high-inequality developing countries escape absolute poverty?,"
Elsevier, vol. 56(1), pages 51-57, September.
- Ravallion, Martin, 1997. "Can high-inequality developing countries escape absolute poverty?," Policy Research Working Paper Series 1775, The World Bank.
- Milanovic, Branko, 2003. "Is inequality in Africa really different ?," Policy Research Working Paper Series 3169, The World Bank.
- Ali, Ali Abdel Gadir, 1998. "Dealing with Poverty and Income Distribution Issues in Developing Countries: Cross-Regional Experiences," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 7(0), pages 77-115, December.
- Fosu, A. K., 2001. "Political instability and economic growth in developing economies: some specification empirics," Economics Letters, Elsevier, vol. 70(2), pages 289-294, February.
- Augustin Kwasi Fosu, 2008. "Inequality and the growth-poverty nexus: specification empirics using African data," Applied Economics Letters, Taylor & Francis Journals, vol. 15(7), pages 563-566.
- Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April.
- Dollar, David & Kraay, Aart, 2001.
"Growth is good for the poor,"
Policy Research Working Paper Series
2587, The World Bank.
- Heerink, Nico & Folmer, Henk, 1994.
"Income distribution and the fulfillment of basic needs: Theory and empirical evidence,"
Journal of Policy Modeling,
Elsevier, vol. 16(6), pages 625-652, December.
- Heerink, N. & Folmer, H., 1991. "Income Distribution and the Fulfilment of Basic Needs: Theory and Empirical Evidence," Mansholt Working Papers 1991-1, Wageningen University, Mansholt Graduate School of Social Sciences.
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
- Goldstein, Joshua S., 1985. "Basic human needs: The plateau curve," World Development, Elsevier, vol. 13(5), pages 595-609, May.
- Adelman, Irma, 1975. "Development Economics-A Reassessment of Goals," American Economic Review, American Economic Association, vol. 65(2), pages 302-09, May.
- Hicks, Norman & Streeten, Paul, 1979. "Indicators of development: The search for a basic needs yardstick," World Development, Elsevier, vol. 7(6), pages 567-580, June.
- Fields, Gary S., 1981. "Poverty, inequality, and development: A distributional approach," Journal of Policy Modeling, Elsevier, vol. 3(3), pages 295-315, October.
- World Bank, 2009. "World Development Indicators 2009," World Bank Publications, The World Bank, number 4367, October.
- Salvatore, Dominick, 2007. "Growth, international inequalities, and poverty in a globalizing world," Journal of Policy Modeling, Elsevier, vol. 29(4), pages 635-641.
When requesting a correction, please mention this item's handle: RePEc:eee:jpolmo:v:32:y::i:6:p:818-827. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.