Growth, poverty, and inequality : a regional panel for Bangladesh
Most empirical work on how growth affects poverty and inequality has been based on international panel data sets. Panels can also be used within a country, if the analysis is carried out at the regional level. The author does this for Bangladesh, where regional panel estimates indicate that growth reduces poverty in both urban and rural areas. Growth is associated with rising inequality only in urban areas. Simulations based on these estimates indicate how much poverty reduction could increase in the next 10 years if growth were promoted in rural areas rather than urban areas.
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