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The Poverty-Growth-Inequality Triangle: Asia 1960s to 2010s

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  • Guanghua Wan

    (Fudan University)

  • Chen Wang

    (Shanghai University of Finance and Economics)

  • Xun Zhang

    (Beijing Normal University)

Abstract

The main objective of this paper is to disentangle the poverty-growth-inequality triangle for Asia, its sub-regions and individual economies by constructing poverty and inequality profiles, decomposing poverty changes and modelling inequality. Due to a shortage of unit record data, analytical techniques are developed for estimating the poverty headcount ratio and regional inequality with minimum data requirements. Analytical results confirm significant reductions in poverty across the board due to fast growth, although the benign effect of growth on poverty was offset by worsening distributions in many economies. Furthermore, the poverty-reducing effect of growth has been diminishing over time and converging to 0 for many countries. Also, the cost of rising inequality in Asia was found to be surprisingly large in terms of missed poverty reduction. Looking ahead, Asia is expected to eradicate abject poverty soon but likely to continue facing high inequality, particularly income gaps between economies.

Suggested Citation

  • Guanghua Wan & Chen Wang & Xun Zhang, 2021. "The Poverty-Growth-Inequality Triangle: Asia 1960s to 2010s," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(3), pages 795-822, February.
    • Handle: RePEc:spr:soinre:v:153:y:2021:i:3:d:10.1007_s11205-020-02521-6
    DOI: 10.1007/s11205-020-02521-6
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    2. Nattapong Puttanapong & Amornrat Luenam & Pit Jongwattanakul, 2022. "Spatial Analysis of Inequality in Thailand: Applications of Satellite Data and Spatial Statistics/Econometrics," Sustainability, MDPI, vol. 14(7), pages 1-25, March.
    3. Balu Pawde & Tara Shankar Shaw & Pushpa L. Trivedi, 2024. "Manufacturing Activity and Inequality in India," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 22(4), pages 911-944, December.
    4. Karthikeya Naraparaju & S. Chandrasekhar, 2022. "Poverty Reduction in Rural India During 2004–2005 to 2011–2012: Role of Growth, Redistribution, and Population‐Shifts," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(S2), pages 295-316, December.
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    More about this item

    Keywords

    Poverty decomposition; Inequality profile; Growth; Asia;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics

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