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Accounting for Heterogeneity in Growth Incidence in Cameroon Using Recentered Influence Function Regression

B. Essama-Nssah (), Saumik Paul and Léandre Bassolé
Additional contact information
B. Essama-Nssah: Independent Consultant (Former World Bank Senior Economist)
Léandre Bassolé: African Development Bank

No 288, Working Papers from ECINEQ, Society for the Study of Economic Inequality

Abstract: This paper frames growth incidence analysis within the logic of social impact evaluation understood as an assessment of variations in individual and social outcomes attributable to shocks and policies. It uses recentered influence function (RIF) regression to link the growth incidence curve (GIC) to household characteristics and perform counterfactual decomposition à la Oaxaca-Blinder to identify sources of variation in the distribution of consumption expenditure in Cameroon in 2001-2007. We find that the structural effect is driven mostly by the sector of employment and geography and is the main driver of the observed pattern of growth. The composition effect accounts for the lion’s share of the observed variation in the social impact of growth. In particular, that effect tends to reduce poverty while the structural effect tends to increase it. This conclusion is robust with respect to the choice of poverty measures and RIF regression models.

Keywords: Cameroon; counterfactual analysis; economic growth; growth incidence curve; inequality; Oaxaca-Blinder decomposition; poverty; recentered influence function (RIF) regression; quantile regression; social evaluation (search for similar items in EconPapers)
JEL-codes: C14 C31 D31 I32 O55 R11 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2013-02
New Economics Papers: this item is included in nep-afr and nep-fdg
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