The effect of robust growth on poverty: a nonlinear analysis

Walter Enders and Gary Hoover

Applied Economics, 2003, vol. 35, issue 9, 1063-1071

Abstract: Previous research has shown that economic growth should help to reduce the rate of poverty. However, a number of recent studies have found that the economic expansion of the 1980s had no statistically significant effect on aggregate poverty. It is shown that both a Threshold regression and a Fourier approximation provide a better empirical model of poverty than the standard linear model. It is noteworthy that the nonlinear specifications show a large and significant effect on poverty of the 1980s expansion.

Date: 2003
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DOI: 10.1080/0003684032000080871

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