Dynamic and Long-term Linkages among Growth, Inequality and Poverty in Developing Countries

Katsushi Imai and Raghav Gaiha

Global Development Institute Working Paper Series from GDI, The University of Manchester

Abstract: Abstract Drawing upon a cross-country panel data for developing countries, the present study sheds new empirical light on dynamic and long-term linkages among growth, inequality and poverty. First, agricultural sector growth is found to be consistently the most important factor in reducing inequality and poverty not only through its direct effects but also through its indirect effects. Second, there is a significant and negative association between inequality and GDP per capita, with macro institutional quality as one of the important factors in determining the inequality-growth relationship. Third, policies designed to prevent conflicts and mitigate their disruptive effects and violence, stabilise commodity prices, and enhance institutional quality would help eliminate worst forms of deprivation. Our analysis points to a drastic shift away from rural- urban migration and urbanisation as main drivers of growth and elimination of extreme poverty, and towards revival of agriculture in the post-2015 policy discourse. Indeed, the case for urbanisation rests on not just shaky empirical foundations but could mislead policy makers and donors.

Date: 2014
New Economics Papers: this item is included in nep-agr and nep-gro
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://hummedia.manchester.ac.uk/institutes/gdi/pu ... pi/bwpi-wp-19814.pdf (application/pdf)

Related works:
Working Paper: Dynamic and Long-term Linkages among Growth, Inequality and Poverty in Developing Countries (2014)
Working Paper: Dynamic and Long-term Linkages among Growth, Inequality and Poverty in Developing Countries (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bwp:bwppap:19814

Access Statistics for this paper

More papers in Global Development Institute Working Paper Series from GDI, The University of Manchester Contact information at EDIRC.
Bibliographic data for series maintained by Rowena Harding ().