Cointegration growth, poverty and inequality in Sudan

Hisham Hassan ()

MPRA Paper from University Library of Munich, Germany

Abstract: 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, poverty to growth, to poverty. 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

Keywords: growth; poverty; inequality; Sudan (search for similar items in EconPapers)
JEL-codes: A10 C01 C22 D63 (search for similar items in EconPapers)
Date: 2008-05, Revised 2012-02
New Economics Papers: this item is included in nep-afr and nep-fdg
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Related works:
Journal Article: Cointegration Growth, Poverty and Inequality in Sudan (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:36651

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