How Economic Growth Reduces Poverty: A General Equilibrium Analysis for Indonesia

George Fane and Peter Warr

No DP2002-19, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Do changes in poverty and inequality depend directly on the rate of economic growth, or does the source of the growth also matter? This paper uses a computable general equilibrium model of the Indonesian economy to explore this question by simulating increases in GDP arising from (i) technical progress in each of seven broad sectors, and (ii) the accumulation of each of six types of physical and human capital.

Keywords: Economic development; Equality and inequality; Factor proportions; Income distribution; Poverty (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (11)

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