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Dealing with Poverty and Income Distribution Issues in Developing Countries: Cross-Regional Experiences

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  • Ali, Ali Abdel Gadir

Abstract

The paper deals with the major empirical poverty and income distribution issues in the context of developing countries. To focus attention it starts with a simple poverty decomposition framework where a change in poverty is shown to be the sum of a change due to economic growth and a change due to income distribution. It is shown that when the poverty line is a function of mean income, the elasticity of the poverty line with respect to income plays an important role in determining the size of the change due to growth. Using a recent set of data on income distribution for developing countries, the paper then looks at income inequality and poverty in three developing regions (Latin America, Asia and Sub-Saharan Africa). Empirical results on the Kuznets curve, initial inequality, and growth and adjustment and poverty are reported and policy implications are drawn. Copyright 1998 by Oxford University Press.

Suggested Citation

  • 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.
  • Handle: RePEc:oup:jafrec:v:7:y:1998:i:0:p:77-115
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    Citations

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    Cited by:

    1. Getahun, Tafesse, 2005. "The contributions of agricultural growth to poverty reduction in Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 14(1).
    2. Belkacem Laabas and Imed Limam, "undated". "Impact of public policies on poverty, income distribution and growth," API-Working Paper Series 0401, Arab Planning Institute - Kuwait, Information Center.
    3. Ali Abdel Gadir Ali, "undated". "Conflict Resolution and Wealth Sharing in Sudan: Towards an Allocation Formula," API-Working Paper Series 0305, Arab Planning Institute - Kuwait, Information Center.
    4. Fosu, Augustin Kwasi, 2010. "Does inequality constrain poverty reduction programs? Evidence from Africa," Journal of Policy Modeling, Elsevier, vol. 32(6), pages 818-827, November.
    5. Bigsten , Arne & Levin, Jörgen, 2000. "Growth, Income Distribution, and Poverty: A Review," Working Papers in Economics 32, University of Gothenburg, Department of Economics.
    6. ALi Abdel Gadir Ali, "undated". "Poverty in the Arab Region: A Selective Review," API-Working Paper Series 0402, Arab Planning Institute - Kuwait, Information Center.
    7. Frances Stewart, 2003. "Income distribution and development," Chapters,in: Trade and Development, chapter 10 Edward Elgar Publishing.

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