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Cointegration Growth, Poverty and Inequality in Sudan

Hisham Hassan ()

Economic Research Guardian, 2012, vol. 2, issue 1, 70-98

Abstract: This analytical review explores the links between growth, poverty and inequality in Sudan for the period 1956-2003. This paper build upon different models to investigate empirically the relationship between economic growth - as measured by GDP per capita growth- and inequality as measured by Gini coefficient (the growth, inequality and poverty triangle hypotheses), using data from the national and international sources. The paper tries to answer the following questions: i) whether growth, inequality and poverty are cointegrated, ii) whether growth Granger causes inequality, iii) and whether inequality Granger causes poverty. Finally, a VAR is constructed and impulse response functions (IRFs) are employed to investigate the effects of macroeconomic shocks. The results suggest that growth; poverty and inequality are cointegrated when poverty and inequality are the dependent variable, but are not cointegrated when growth is the dependent variable. In the long-run the causality runs from inequality, p verty to growth, and to poverty, while in the short-run causal effects, runs from poverty to growth. Thus, there is unidirectional relationship, running from growth to poverty, both in the long- run and short run.

Keywords: Cointgration; Inequality; Poverty; Economic growth; Sudan (search for similar items in EconPapers)
JEL-codes: I31 I38 O11 O4 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (1)

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