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A Hypothesis on Poverty Change in Albania (2007-2016)

Author

Listed:
  • Antonella Biscione

    (CESPIC, Catholic University Our Lady of Good Counsel)

  • Dorothée Boccanfuso

    (Université Mohammed VI Polytechnique)

  • Raul Caruso

    (Università Cattolica del Sacro Cuore, CESPIC Catholic University Our Lady of Good Counsel)

Abstract

The aim of this paper is to investigate the poverty changes in Albania using data coming from the Household Budget Surveys conducted in 2007-2016 by the Albanian National Statistics Institute (INSTAT). In particular, we employ both static and dynamic approaches to evaluate the effect of growth and inequality on poverty variation both at national and macro-region level. To better understand the effect of economic growth on poverty change, we also perform two simulations that account for two scenarios of economic growth. The results show that: (i) the increase in poor population is due to the lack of growth in consumption; (ii) the improvement in the distribution of consumption has stopped further increases in poverty level. Finally, the findings of the two economic growth simulations show that an economic growth without an increase in inequality could reduce poverty in all its dimensions.

Suggested Citation

  • Antonella Biscione & Dorothée Boccanfuso & Raul Caruso, 2020. "A Hypothesis on Poverty Change in Albania (2007-2016)," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 128(3), pages 301-320.
    • Handle: RePEc:vep:journl:y:2020:v:128:i:3:p:301-320
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    More about this item

    Keywords

    FGT class index; Poverty; Poverty decomposition; Elasticity of poverty; Albania;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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