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Poverty and economic growth in Egypt, 1995-2000

Author

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  • El-Laithy, Heba
  • Lokshin, Michael
  • Banerji, Arup

Abstract

After a decade of slow economic growth Egypt's rate of growth recovered in the late 1990s, averaging more than five percent a year. But the effect of this growth on poverty patterns has not been systematically examined using consistent, comparable household datasets. In this paper, the authors use the rich set of unit-level data from the most recent Egyptian household surveys (1995-96 and 1999-2000) to assess changes in poverty and inequality between 1995 and 2000. Their analysis is based on household-specific poverty lines that account for the differences in regional prices, as well as differences in the consumption preferences and size and age composition of poor households. The results show that average household expenditures rose in the second half of the 1990s and the poverty rate fell from 20 percent to less than 17 percent. But, in addition to the ongoing divide in the urban-rural standard of living, a new geographical/regional divide emerged in the late 1990s. Poverty was found predominantly among less-educated individuals, particularly those working in agriculture and construction, and among seasonal and occasional workers. These groups could suffer the most from the slowing economic growth evident after 1999-2000.

Suggested Citation

  • El-Laithy, Heba & Lokshin, Michael & Banerji, Arup, 2003. "Poverty and economic growth in Egypt, 1995-2000," Policy Research Working Paper Series 3068, The World Bank.
  • Handle: RePEc:wbk:wbrwps:3068
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    References listed on IDEAS

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    Cited by:

    1. Marotta, Daniela & Yemtsov, Ruslan & El-Laithy, Heba & Abou-Ali, Hala & Al-Shawarby, Sherine, 2011. "Was growth in Egypt between 2005 and 2008 pro-poor ? from static to dynamic poverty profile," Policy Research Working Paper Series 5589, The World Bank.
    2. Christophe EHRHART, 2012. "La Croissance A-T-Elle Été Favorable Aux Pauvres En Égypte Sur La Période 1990-2004 ?," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 35, pages 37-55.
    3. Kraay, Aart, 2007. "The welfare effects of a large depreciation : the case of Egypt, 2000-05," Policy Research Working Paper Series 4182, The World Bank.
    4. Shireen Al Azzawi, 2010. "The Dynamics of Poverty and Inequality in an Era of Economic Liberalization: The Case of Egypt," Working Papers 539, Economic Research Forum, revised 09 Jan 2010.
    5. André Croppenstedt, 2006. "Household Income Structure and Determinants in Rural Egypt," Working Papers 06-02, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    6. Lobna M. Abdellatif & Mohamed Ramadan & Sarah A. Elbakry, 2017. "How Gender Biased Are Female-Headed Household Transfers in Egypt?," Working Papers 1126, Economic Research Forum, revised 08 Oct 2017.

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