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Exits from the poverty trap and growth accelerations in a dual economy model
Author(s) -
Berthelemy JeanClaude
Publication year - 2021
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.12776
Subject(s) - poverty trap , poverty , robustness (evolution) , growth model , economics , poverty reduction , acceleration , impulse (physics) , trap (plumbing) , dual (grammatical number) , macroeconomics , economic growth , environmental science , physics , classical mechanics , chemistry , biochemistry , gene , art , literature , environmental engineering
We propose a simple theoretical dual economy model to study the dynamics of an economy in which individuals move out of a poverty trap. These dynamics are characterized by growth acceleration. This model implies that poverty reduction could, under some circumstances, cause growth, rather than the other way around. We define a measurement of the growth impulse that could be triggered by independent exits from poverty and correlate it with observed growth ccelerations. This correlation is both positive and significant, and it passes various robustness checks.