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Where Does the Axe Fall? Inflation Dynamics and Poverty Rates: Regional and Sectoral Evidence for Ghana

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  • Coleman, Simeon

Abstract

The possibility of an inflation-induced poverty-trap due to the welfare-decreasing effects of inflation and the advantages of geographic targeting in poverty programs are well-documented. Using fractional integration methods, and data from Ghana, we analyze regional and sectoral inflation dynamics vis-à-vis regional poverty rates to determine where the adverse impacts of inflation persistence would, most likely, hit hardest and policy should target. In particular, we conclude that the poor in three regions, and patrons of five sectors require the most attention, particularly since three of the five sectors are basic necessities.

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  • Coleman, Simeon, 2012. "Where Does the Axe Fall? Inflation Dynamics and Poverty Rates: Regional and Sectoral Evidence for Ghana," World Development, Elsevier, vol. 40(12), pages 2454-2467.
    • Handle: RePEc:eee:wdevel:v:40:y:2012:i:12:p:2454-2467
    DOI: 10.1016/j.worlddev.2012.05.019
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    2. Layani, Ghasem & Bakhshoodeh, Mohammad & Aghabeygi, Mona & Kurstal, Yaprak & Viaggi, Davide, 2020. "The impact of food price shocks on poverty and vulnerability of urban households in Iran," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 9(1), April.
    3. Andy McKay & Jukka Pirttilä & Finn Tarp, 2015. "Ghana: Poverty Reduction Over Thirty Years," WIDER Working Paper Series wp-2015-052, World Institute for Development Economic Research (UNU-WIDER).
    4. Rodriguez-Takeuchi, Laura & Imai, Katsushi S., 2013. "Food price surges and poverty in urban Colombia: New evidence from household survey data," Food Policy, Elsevier, vol. 43(C), pages 227-236.

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