The effect of robust growth on poverty: a nonlinear analysis
Abstract: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.
Document Type: Research Article
Affiliations: University of Alabama, Department of Economics, Box 870224, Tuscaloosa, AL, 35487-0224, USA
Publication date: 2003-06-01