Poverty, Growth and Inequality in Developing Countries

Housseima Guiga and Jaleleddine Ben Rejeb
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Housseima Guiga: Faculty of Economic Sciences and Management of Tunis,Tunis El Manar University, TUNISIA.
Jaleleddine Ben Rejeb: , Higher Institute of Management of Sousse, University of Sousse, TUNISIA.

International Journal of Economics and Financial Issues, 2012, vol. 2, issue 4, 470-479

Abstract: The purpose of this paper is to assess the position of some developing countries in relation to different theories about the relationship between poverty, growth and inequality. We conducted an econometric analysis through a study using panel data from 52 developing countries over the period 1990-2005, to determine the main sources of poverty reduction and show the interdependence between poverty, inequality and growth by using a system of simultaneous equations. This method is rarely applied econometric panel data and especially in the case studies on poverty. Our results indicate that the state investment in social sectors such as education and health and improving the living conditions of the rural population can promote economic growth and reducing inequality. Therefore, the Kuznets hypothesis is based on a relationship between economic growths to income inequality is most appropriate.

Keywords: Audit Quality; Earnings Management; Legal Enforcement (search for similar items in EconPapers)
JEL-codes: C30 C33 I32 O15 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2012-04-9

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