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Applied Economics Letters

Volume 16, Issue 18, 2009

Poverty reduction, economic growth and inequality in Africa

Poverty reduction, economic growth and inequality in Africa

DOI:
10.1080/13504850701719587
Fassil Fantaa & Mukti P. Upadhyayb*

pages 1791-1794

Available online: 26 Mar 2008

Abstract

We study the relationships among economic growth, inequality and poverty. Economists agree that growth is fundamental to reducing poverty. But the links among growth, distribution and poverty is still a subject of debate because the growth elasticity of poverty seems to differ from one country to another. Using a data set for 16 African countries, based on household budget surveys, we find strong support that poverty decreases in response to economic growth, with the estimated elasticity ranging between −0.5 and −1.10. Other variables, albeit important in varying degrees, are much less significant as determinants of poverty.

 

Details

  • Citation information:
  • Available online: 26 Mar 2008

Author affiliations

  • a Department of Economics, Southern Illinois University, IL, 62901, Crabondale
  • b Department of Economics, Eastern Illinois University, IL, 61920, Charleston

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Taylor & Francis Group