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Regional multipliers of social accounting matrix and the effective eradication of poverty

Wannaphong Durongkaveroj and Rossarin Osathanunkul () and Rossarin Osathanunkul
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Wannaphong Durongkaveroj and Rossarin Osathanunkul: Chiang Mai University
Rossarin Osathanunkul: Chiang Mai University

Authors registered in the RePEc Author Service: Wannaphong Durongkaveroj ()

The Empirical Econometrics and Quantitative Economics Letters, 2013, vol. 2, issue 4, 39 - 52

Abstract: Halving poverty became a global responsibility. As decreased poverty was typically related with an increased income, policies relevant to economic growth had been widely implemented throughout all regions. The purpose of this study was to simulate the effects of exogenously macroeconomic shocks on regional poverty through SAM multiplier in various groups of developing country around the world. The study revealed that to eradicate poverty in each region required exogenous shock or income injection through an increase in foreign' s demand or in-cash subsidy from government or international agents. Moreover, the response of poverty to given shock was relatively high in Asia due to a strong inter-industry linkage throughout the economy while relatively low in Emerging Europe due to high income level and initially low poverty rate. Additionally, light manufacturing sector should be supported in Asia in order to capably reduce the destitution. Also, a policy aimed at encouraging processed food sector was an effective tool to raise citizen's living standard in Emerging Europe; Latin America; and Sub-Saharan Africa, Middle East, and North America. Thus, importance of integrated policy will be recognized as a motivator of economic development.

Keywords: Social Account Matrix Multiplier; Poverty; Economic Development (search for similar items in EconPapers)
JEL-codes: I32 O21 O57 (search for similar items in EconPapers)
Date: 2013
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Handle: RePEc:chi:journl:v:2:y:2013:i:4:p:39-52