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

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  • George Fane
  • Peter Warr

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.

Suggested Citation

  • George Fane & Peter Warr, 2002. "How Economic Growth Reduces Poverty: A General Equilibrium Analysis for Indonesia," WIDER Working Paper Series DP2002-19, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2002-19
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    File URL: https://www.wider.unu.edu/sites/default/files/dp2002-19.pdf
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    References listed on IDEAS

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    1. Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," The World Bank Economic Review, World Bank, vol. 10(1), pages 1-25, January.
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    Cited by:

    1. Gutierrez, Catalina & Orecchia, Carlo & Paci, Pierella & Serneels, Pieter, 2007. "Does employment generation really matter for poverty reduction ?," Policy Research Working Paper Series 4432, The World Bank.
    2. Peter Warr & Arief Anshory Yusuf, 2009. "International food prices and poverty in Indonesia," Departmental Working Papers 2009-19, The Australian National University, Arndt-Corden Department of Economics.
    3. Warr, Peter G., 2005. "Food policy and poverty in Indonesia: a general equilibrium analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(4), pages 1-23.
    4. Andy Sumner, 2013. "The Evolution Of Education And Health Poverty During Economic Development:The Case Of Indonesia, 1991–2007," Working Papers in Economics and Development Studies (WoPEDS) 201311, Department of Economics, Padjadjaran University, revised May 2013.
    5. Peter Warr, 2007. "Petroleum Import Prices and Poverty: A General Equilibrium Analysis for Lao PDR," DEGIT Conference Papers c012_039, DEGIT, Dynamics, Economic Growth, and International Trade.
    6. Warr, Peter G., 2005. "Food Policy And Poverty: A General Equilibrium Analysis For Indonesia," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 139296, Australian Agricultural and Resource Economics Society.
    7. Warr, Peter G., 2009. "Agricultural Protection and Poverty in Indonesia: A General Equilibrium Analysis," Agricultural Distortions Working Paper Series 52788, World Bank.
    8. Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
    9. Andy Sumner & Peter Edward, "undated". "From Low Income, High Poverty to High-Income, No Poverty? An Optimistic View of the Long-Run Evolution of Poverty in Indonesia By International Poverty Lines, 1984–2030," Working Papers 287, Publications Department.

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