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The Dynamics of Growth, Poverty, and Inequality: A Panel Analysis of Regional Data from the Philippines and Thailand

Author

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  • Kyosuke Kurita
  • Takashi Kurosaki

Abstract

We propose a new methodological framework to empirically analyze the dynamics of growth, poverty, and inequalitythat incorporates the fact that the entire distribution of a welfare indicator, say, real percapita consumption, changes over time, and that empirical variables for growth, poverty, and inequality are often compiled from the distribution of the welfare indicator. Empirical models derived from this framework are applied to a unique panel dataset of provinces in the Philippines (1985-2003) and Thailand (1988-2004), compiled from microdata on household expenditures. The system GMM estimation results suggest that inequality reduced the subsequent growth rate of percapita consumption in both countries and differences in inequality explain a substantial portion of the Philippine-Thai difference in growth and poverty reduction during the late 1980s and the 1990s.

Suggested Citation

  • Kyosuke Kurita & Takashi Kurosaki, 2007. "The Dynamics of Growth, Poverty, and Inequality: A Panel Analysis of Regional Data from the Philippines and Thailand," Hi-Stat Discussion Paper Series d07-223, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hst:hstdps:d07-223
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    File URL: http://hi-stat.ier.hit-u.ac.jp/research/discussion/2007/pdf/D07-223.pdf
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    Citations

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    Cited by:

    1. Masako Oyama, 2014. "New evidence on income distribution and economic growth in Japan," ISER Discussion Paper 0917, Institute of Social and Economic Research, Osaka University.
    2. Muhammad Khan & Muhammad Khan & Khalid Zaman & Umar Hassan & Sobia Umar, 2014. "Global estimates of growth–inequality–poverty (GIP) triangle: evidence from World Bank’s classification countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(5), pages 2631-2646, September.
    3. Sapkota, Jeet Bahadur, 2014. "Access to Infrastructure and Human Development:Cross-Country Evidence," Working Papers 70, JICA Research Institute.
    4. Masako Oyama, 2014. "How does income distribution affect economic growth? --Evidence from Japanese prefectural data--," ISER Discussion Paper 0910, Institute of Social and Economic Research, Osaka University.
    5. Richardson Kojo Edeme & Evelyn Osaretin Ogbeide & A. Ifelunini Innocent & Sam Ugwu, 2017. "Exam nat on of the Dynam c Relationship Between Poverty and Inequal ty: Ev dence from N ger a M cro Data," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 518-523.

    More about this item

    Keywords

    poverty; inequality; pro-poor growth; convergence; Thailand; the Philippines;
    All these keywords.

    JEL classification:

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

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