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Cointegration Growth, Poverty and Inequality in Sudan


  • Hisham Mohamed Hassan Ali

    () (Faculty of Economic and Social Studies, Department of Econometrics and Social Statistics, University of Khartoum, Sudan)


This analytical review explores the links between growth, poverty and inequality in Sudan for the period 1956-2003. This paper build upon different models to investigate empirically the relationship between economic growth - as measured by GDP per capita growth- and inequality as measured by Gini coefficient (the growth, inequality and poverty triangle hypotheses), using data from the national and international sources. The paper tries to answer the following questions: i) whether growth, inequality and poverty are cointegrated, ii) whether growth Granger causes inequality, iii) and whether inequality Granger causes poverty. Finally, a VAR is constructed and impulse response functions (IRFs) are employed to investigate the effects of macroeconomic shocks. The results suggest that growth; poverty and inequality are cointegrated when poverty and inequality are the dependent variable, but are not cointegrated when growth is the dependent variable. In the long-run the causality runs from inequality, p verty to growth, and to poverty, while in the short-run causal effects, runs from poverty to growth. Thus, there is unidirectional relationship, running from growth to poverty, both in the long- run and short run.

Suggested Citation

  • Hisham Mohamed Hassan Ali, 2012. "Cointegration Growth, Poverty and Inequality in Sudan," Economic Research Guardian, Weissberg Publishing, vol. 2(1), pages 70-98, May.
  • Handle: RePEc:wei:journl:v:2:y:2012:i:1:p:70-98

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    References listed on IDEAS

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    More about this item


    Cointgration; Inequality; Poverty; Economic growth; Sudan;

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs


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