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.
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.:
- Salvatore, Dominick, 2007. "Growth, international inequalities, and poverty in a globalizing world," Journal of Policy Modeling, Elsevier, vol. 29(4), pages 635-641.
- Dollar, David & Kraay, Aart, 2002.
"Growth Is Good for the Poor,"
Journal of Economic Growth,
Springer, vol. 7(3), pages 195-225, September.
- Dollar, David & Kraay, Aart, 2001. "Growth is good for the poor," Policy Research Working Paper Series 2587, The World Bank.
- Ravallion, Martin, 1997. "Can high-inequality developing countries escape absolute poverty?," Economics Letters, 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.
- 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.
- 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.
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
- 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.
- Goldstein, Joshua S., 1985. "Basic human needs: The plateau curve," World Development, Elsevier, vol. 13(5), pages 595-609, May.
- 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.
- World Bank, 2009. "World Development Indicators 2009," World Bank Publications, The World Bank, number 4367, July.
- 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.
- 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.
- Milanovic, Branko, 2003. "Is inequality in Africa really different ?," Policy Research Working Paper Series 3169, The World Bank.
- Fields,Gary S., 1981. "Poverty, Inequality, and Development," Cambridge Books, Cambridge University Press, number 9780521298520, Diciembre.
- Adelman, Irma, 1975. "Development Economics-A Reassessment of Goals," American Economic Review, American Economic Association, vol. 65(2), pages 302-309, May.
- Fields, Gary S., 1981. "Poverty, inequality, and development: A distributional approach," Journal of Policy Modeling, Elsevier, vol. 3(3), pages 295-315, October.
- 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. Full references (including those not matched with items on IDEAS)
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.
If references are entirely missing, you can add them using this form.