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Exits from the Poverty Trap and Growth Accelerations in a Dual Economy Model

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  • Jean-Claude Berthélemy

    () (FERDI - Fondation pour les Etudes et Recherches sur le Développement International, CES - Centre d'économie de la Sorbonne - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne)

Abstract

We propose a simple theoretical dual economy model to study the dynamics of an economy in which individuals move out of a poverty trap. These dynamics are characterized by growth acceleration. This model implies that poverty reduction could, under some circumstances, cause growth, rather than the other way around. We define a measurement of the growth impulse that could be triggered by independent exits from poverty and correlate it with observed growth accelerations. This correlation is both positive and significant, and it passes various robustness checks. .

Suggested Citation

  • Jean-Claude Berthélemy, 2018. "Exits from the Poverty Trap and Growth Accelerations in a Dual Economy Model," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01881333, HAL.
  • Handle: RePEc:hal:cesptp:hal-01881333
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01881333
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    References listed on IDEAS

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    1. Aart Kraay & David McKenzie, 2014. "Do Poverty Traps Exist? Assessing the Evidence," Journal of Economic Perspectives, American Economic Association, vol. 28(3), pages 127-148, Summer.
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    6. Jean-Claude Berthélemy, 2018. "Exits from the Poverty Trap and Growth Accelerations in a Dual Economy Model," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01881333, HAL.
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    Cited by:

    1. Jean-Claude BERTHELEMY, 2018. "Exits from the Poverty Trap and Growth Accelerations in a Dual Economy Model," Working Papers P234, FERDI.

    More about this item

    Keywords

    Growth acceleration; poverty trap; poverty reduction;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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