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Poverty rate determinants in the Central and Eastern Europe member states

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  • Maria-Daniela TUDORACHE

    (Bucharest University of Economic Studies, Romania)

Abstract

This paper aims to provide an analysis of the determinants of poverty rate in ten member states of the European Union from the Central and Eastern Europe, and of the way how its influenced poverty in the 2009-2016 period. In order to estimate the impact, I used panel technique and Estimated Generalized Least Squares method with no effects, weighted by Period SUR option to provide more consistent estimators. To verify if the model is correctly specified and to confirm the maximum verisimilitude of the estimators, I tested the Gauss-Markov. The conclusion of the paper is that the unemployment rate, rural population, as well as the early leavers rate of people aged between 18-24, have a positive impact on the rate of people at risk of poverty rate after social transfers. On the other hand, the government spending on social protection has a negative impact on the used dependent variable.

Suggested Citation

  • Maria-Daniela TUDORACHE, 2019. "Poverty rate determinants in the Central and Eastern Europe member states," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(621), W), pages 163-180, Winter.
    • Handle: RePEc:agr:journl:v:xxvi:y:2019:i:4(621):p:163-180
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    More about this item

    Keywords

    poverty; panel; unemployment rate; rural; early leavers rate.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G01 - Financial Economics - - General - - - Financial Crises
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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