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http://hdl.handle.net/10419/45114
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| Title: | | Inequality and the impact of growth on poverty: Comparative evidence for Sub-Saharan Africa  |
| Authors: | | Fosu, Augustin Kwasi |
| Issue Date: | | 2008 |
| Series/Report no.: | | Research paper / UNU-WIDER 2008.107 |
| Abstract: | | This study explores the extent to which inequality affects the impact of income growth on the rates of poverty changes in sub-Saharan Africa (SSA) comparatively with non-SSA, based on a global sample of 1977-2004 unbalanced panel data. For both regions and all three measures of poverty - headcount, gap, and squared gap - the paper finds the impact of GDP growth on poverty reduction as a decreasing function of initial inequality. The impacts are similar in direction for SSA and non-SSA, so that within both regions there are considerable disparities in the responsiveness of poverty to income growth, depending on inequality. Nevertheless, the income-growth elasticity is substantially less for SSA, implying relatively small poverty-reduction sensitiveness to growth compared with the rest of the developing world. Furthermore, the paper finds a considerable variation in the predicted values of the income-growth elasticity across a large number of SSA countries, implying the need for understanding country-specific inequality attributes for effective poverty-reduction strategies. |
| Subjects: | | inequality income growth poverty sub-Saharan Africa |
| JEL: | | D31 I32 O49 |
| ISBN: | | 978-92-9230-163-7 |
| Document Type: | | Working Paper |
| Appears in Collections: | | WIDER Research Papers, United Nations University (UNU)
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