Proo-poor growth modeling in developing countries: A Gini regression approach

Ndéné Ka ()

Economics Bulletin, 2021, vol. 41, issue 2, 316-327

Abstract: The present study analyzes the relationship between poverty, growth, and income inequality in 24 developing countries. It takes a new empirical approach to analyze the effects of growth and inequality on poverty reduction. Mobilizing an unbalanced panel data over the period 2000–2007 and using the Gini fixed effect estimator to address endogeneity issues, selection bias, and error measurement the results suggest that income inequality and inflation negatively impact poverty reduction and there is a positive and robust relationship between growth and the logarithm of agricultural GDP per capital on poverty. Also, the results indicate that Gini methodology addressing the econometric shortcomings of OLS regression analysis may yield more precise results.

Keywords: Inequality; poverty; Growth; Gini regression (search for similar items in EconPapers)
JEL-codes: C1 D3 (search for similar items in EconPapers)
Date: 2021-04-09
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