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The effect of robust growth on poverty: a nonlinear analysis

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Previous research has shown that economic growth should help to reduce the rate of poverty. However, a number of recent studies have found that the economic expansion of the 1980s had no statistically significant effect on aggregate poverty. It is shown that both a Threshold regression and a Fourier approximation provide a better empirical model of poverty than the standard linear model. It is noteworthy that the nonlinear specifications show a large and significant effect on poverty of the 1980s expansion.
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Document Type: Research Article

Affiliations: University of Alabama, Department of Economics, Box 870224, Tuscaloosa, AL, 35487-0224, USA

Publication date: 01 June 2003

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