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Remedy of Poverty

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  • durongkaveroj, wannaphong

Abstract

Economic growth is typically recognized as the effective tool in eradicating of poverty. Unfortunately, many countries enjoy their national prosperity with no improvement in citizen's living standard. The purpose of this study is to investigate the new tool aimed at reducing poverty through log-linear model and to estimate the impact of exogenous macroeconomic shock occurred in every sector on poverty through SAM multiplier. The result reveals that poverty is not sensitive to economic growth changes while it is definitely elastic to economic development. Growth is no longer an effective tool. Additionally, Latin America needs to export the commodities from meat, heavy manufacturing, and textile sector to help getting people out of poverty.

Suggested Citation

  • durongkaveroj, wannaphong, 2014. "Remedy of Poverty," MPRA Paper 54665, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:54665
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    File URL: https://mpra.ub.uni-muenchen.de/54665/1/MPRA_paper_54665.pdf
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    References listed on IDEAS

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    1. Francisco Javier De Miguel-Velez & Jesus Perez-Mayo, 2008. "Poverty Reduction and SAM Multipliers: An Evaluation of Public Policies in a Regional Framework," European Planning Studies, Taylor & Francis Journals, vol. 18(3), pages 449-466, December.
    2. Breisinger, Clemens & Thomas, Marcelle & Thurlow, James, 2009. "Social accounting matrices and multiplier analysis: An introduction with exercises," Food security in practice technical guide series 5, International Food Policy Research Institute (IFPRI).
    3. Thorbecke, Erik & Jung, Hong-Sang, 1996. "A multiplier decomposition method to analyze poverty alleviation," Journal of Development Economics, Elsevier, vol. 48(2), pages 279-300, March.
    4. durongkaveroj, wannaphong, 2014. "Growth or development: experience from Latin America," MPRA Paper 54481, University Library of Munich, Germany, revised 16 Mar 2014.
    5. 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.
    6. Squire, Lyn, 1993. "Fighting Poverty," American Economic Review, American Economic Association, vol. 83(2), pages 377-382, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    poverty; economic growth; economic development; sam multiplier;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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