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Growth, Redistribution and Poverty Changes in Cameroon: A Shapley Decomposition Analysis

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  • Francis Menjo Baye

Abstract

This paper studies the decomposition of poverty changes in Cameroon. Specifically, it reviews theoretical frameworks for growth--redistribution decomposition analyses, presents the data and poverty measures and estimates the growth--redistribution components of changes in measured poverty by the Shapley value-based approach using Cameroon's household surveys. By all the P-sub-α class of measures, poverty increased significantly between 1984 and 1996. The growth components overaccounted for the increase, although shifts in national, rural and semi-urban distributions marginally mitigated the worse effects on the population. A decline in mean incomes as well as adverse distributional shifts contributed to a significant increase in urban poverty during the same period. These findings corroborate the general information in the literature that growth effects tend to dominate the effects of changes in the distribution of income. These results illustrate the potential contribution of distributionally neutral growth in household incomes to poverty alleviation in Cameroon. Although redistribution also has an important role to play, it should be accepted that there must be severe limits to what can be achieved by growth neutral redistribution. Growth in household incomes appears more likely to be essential for long-term poverty reduction and will be more effective if poverty alleviation programmes are targeted disproportionately in favour of rural and semi-urban areas. Copyright 2006, Oxford University Press.

Suggested Citation

  • Francis Menjo Baye, 2006. "Growth, Redistribution and Poverty Changes in Cameroon: A Shapley Decomposition Analysis," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(4), pages 543-570, December.
  • Handle: RePEc:oup:jafrec:v:15:y:2006:i:4:p:543-570
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    References listed on IDEAS

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    1. Teuber, Ramona, 2007. "Geographical Indications of Origin as a Tool of Product Differentiation : The Case of Coffee," Discussion Papers 33, Justus Liebig University Giessen, Center for international Development and Environmental Research (ZEU).
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    Cited by:

    1. Florent Bresson, 2008. "The estimation of the growth and redistribution components of changes in poverty: a reassessment," Economics Bulletin, AccessEcon, vol. 9(14), pages 1-7.
    2. Ivica Rubil, 2013. "Accounting for Regional Poverty Differences in Croatia: Exploring the Role of Disparities in Average Income and Inequality," Working Papers 1301, The Institute of Economics, Zagreb.
    3. Florent Bresson, 2010. "A general class of inequality elasticities of poverty," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(1), pages 71-100, March.
    4. repec:eee:wdevel:v:100:y:2017:i:c:p:69-84 is not listed on IDEAS
    5. Fujii, Tomoki, 2017. "Dynamic Poverty Decomposition Analysis: An Application to the Philippines," World Development, Elsevier, vol. 100(C), pages 69-84.
    6. Francis Menjo Baye, 2010. "Exact Configuration of Poverty,Inequality and Polarization Trends in the Distribution of well-being in Cameroon," Research Papers RP_207, African Economic Research Consortium.
    7. Wasiu Adekunle Are, 2012. "Growth and Income Redistribution Components of Changes in Poverty: A Decomposition Analysis for Ireland, 1987-2005," Working Papers 201231, School of Economics, University College Dublin.
    8. Juan Carlos Chávez Martín del Campo & Horacio González Sánchez & Hector Villarreal Páez, 2010. "Una Aplicación de la Teoría de Juegos Cooperativos a la Descomposición de la Pobreza en México," Department of Economics and Finance Working Papers EC201003, Universidad de Guanajuato, Department of Economics and Finance.
    9. repec:ebl:ecbull:v:9:y:2008:i:14:p:1-7 is not listed on IDEAS
    10. Wang, Chen & Wan, Guanghua, 2015. "Income polarization in China: Trends and changes," China Economic Review, Elsevier, vol. 36(C), pages 58-72.
    11. Essama-Nssah, B. & Bassole, Leandre, 2010. "A counterfactual analysis of the poverty impact of economic growth in Cameroon," Policy Research Working Paper Series 5249, The World Bank.

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