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Effect of income distribution on poverty reduction after the Millennium

Author

Listed:
  • Jeeranan Techanan

    (Chiang Mai University)

  • Komsan Suriya

    (Chiang Mai University)

Abstract

This study aims to investigate the effect of income distribution on poverty reduction and the effect of income distribution on growth elasticity of poverty reduction. It uses panel data of 70 countries during 2001-2010 provided by the World Bank. It applies panel data analysis both fixed effect and random effect models. It selects a better model by Hausman test. The findings reveal that, in general, better income distribution cannot reduce poverty in the world after the Millennium. Only in Southeast Asia that income distribution is significantly effective for the poverty alleviation. Moreover, better income distribution does not significantly affect the speed of poverty reduction which is measured by the growth elasticity of poverty reduction. The results of the study suggest that it is still hopeful for governments only in Southeast Asia that poverty can be reduced by better income distribution. Therefore, they should launch the policy that promotes the equality of income distribution especially job creations and income generation in rural communities of the countries to create the ultimate impacts on poverty reduction.

Suggested Citation

  • Jeeranan Techanan & Komsan Suriya, 2012. "Effect of income distribution on poverty reduction after the Millennium," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 1(4), pages 169-179, December.
    • Handle: RePEc:chi:journl:v:1:y:2012:i:4:p:169-179
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    Citations

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    Cited by:

    1. durongkaveroj, wannaphong, 2014. "Growth or development: experience from Latin America," MPRA Paper 54481, University Library of Munich, Germany, revised 16 Mar 2014.
    2. Kitipop Phewmau, 2013. "Recreational valuation of the coral diving activities at Similan island national park in Thailand," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 2(1), pages 79-86, March.
    3. Komsan Suriya, 2014. "How to estimate the model of sustainable profit and corporate social responsibility," Business and Economic Horizons (BEH), Prague Development Center, vol. 9(4), pages 1-7, January.
    4. Phimwalun Srithongkul & Pathairat Pastpipatkul, 2013. "Impacts of economic variables and the corruption perception index on human development," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 2(1), pages 71-78, March.
    5. Tatcha Sudtasan & Komsan Suriya, 2013. "Sustainability of profit and corporate social responsibility: Mathematical modelingwith phase diagram," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 2(4), pages 1-12, December.
    6. Mark Fruin & Desi Peneva & Rati Ram, 2013. "Income elasticity of human development in ASEAN countries," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 2(4), pages 13-20, December.
    7. Wannaphong Durongkaveroj and Rossarin Osathanunkul & Rossarin Osathanunkul, 2013. "Regional multipliers of social accounting matrix and the effective eradication of poverty," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 2(4), pages 39-52, December.

    More about this item

    Keywords

    Income distribution; poverty reduction; growth elasticity of poverty reduction; panel data analysis; millennium;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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