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Revisiting Growth-Poverty Relationship: A Medium-Term Causality Approach.
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- Author(s): Pérez-Moreno, Salvador
- Source:
South African Journal of Economics; Dec2016, Vol. 84 Issue 4, p624-635, 12p- Subject Terms:
- Source:
- Additional Information
- Abstract: This article examines the potential medium-term causal relationship between changes in Gross Domestic Product (GDP) per capita and poverty in developing countries during the 1970s-1990s. For this purpose, we use panel data model evaluation techniques to test the out-of-sample forecasting performance of competing models. We conclude that the evidence supports the hypothesis that increases in GDP per capita cause unidirectional poverty reduction, measured by the $1/day poverty rate, in the period 1970s-1980s. The results are similar when analysing low- and middle-income countries and mid-high- and very high-inequality countries separately. However, in the period 1980s-1990s, it is only statistically significant for low-income countries. [ABSTRACT FROM AUTHOR]
- Abstract: Copyright of South African Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Abstract:
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