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Poverty Reduction through Growth and Redistribution Policies—a Panel Analysis for 59 Developing Countries
Author(s) -
Belke Ansgar,
Wernet Andreas
Publication year - 2015
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/rode.12131
Subject(s) - economics , developing country , panel data , poverty , generalized method of moments , redistribution (election) , econometrics , estimation , estimator , sample (material) , development economics , demographic economics , macroeconomics , economic growth , statistics , chemistry , mathematics , management , chromatography , politics , political science , law
In this paper, we empirically test the determinants of growth, as derived from a semi‐endogenous growth model, in terms of its poverty‐reducing effects. We base our empirical analysis of the growth and distribution effect of economic policies on a panel data set of 59 developing countries, divided into two subgroups, and a sample period ranging from 1960 to 2004. For purposes of estimation we make use of the generalized methods of moments ( GMM ) system estimator. The estimations reveal a poverty‐reducing effect of investment. In contrast population growth induces higher poverty. The import of knowledge is growth enhancing only for countries at a higher stage of development—meanwhile the positive growth effect of an increasing democratization is limited to the poor developing countries.