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

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Using panel data for provinces compiled from household expenditure microdata, the present paper empirically investigates the relationships among growth, poverty and inequality in Thailand and the Philippines. The empirical model avoids the potential bias due to the fact that the entire distribution of individual-level consumption changes over time and empirical variables for growth, poverty and inequality are often compiled from the consumption distribution. The system generalized method of moments estimation results strongly suggest that inequality reduced the growth rate of per-capita consumption, and that differences in inequality explain a substantial portion of the Philippine–Thai difference in growth and poverty reduction since the late 1980s.
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Keywords: I32; O15; Thailand; convergence; inequality; poverty; pro-poor growth; the Philippines

Document Type: Research Article

Affiliations: School of Economics, Kwansei Gakuin University, Japan

Publication date: March 1, 2011

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