The Making of Pro-poor Growth

Desire Avom and Fabrizio Carmignani ()
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Desire Avom: Universite’ de Yaounde’ II
Fabrizio Carmignani: MRG - School of Economics, The University of Queensland, http://www.uq.edu.au/economics/index.html?page=101088

No 2909, MRG Discussion Paper Series from School of Economics, University of Queensland, Australia

Abstract: A system of three endogenous equations is used to estimate the determinants of poverty eduction. The system incorporates: (i) the direct effect of growth and income inequality on poverty, (ii) the feedback effect of poverty on inequality and growth, and (iii) different channels through which economic policies can affect poverty reduction. Results indicate the existence of a virtuous and a vicious equilibrium. The policy mix is then critical in deciding to which of the two equilibria a country converges.

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