The Effect of Robust Growth on Poverty: A Nonlinear Analysis
University of Alabama EFL Working Paper No. 01-02-01
21 Pages Posted: 21 Feb 2001
Date Written: February 2001
Previous research has shown that economic growth should help to reduce the rate of poverty. However, a number of recent studies find that the economic expansion of the 1980's had no statistically significant effect on aggregate poverty. We show that a Fourier approximation provides a better empirical model of poverty than the standard linear model. It is noteworthy that the nonlinear specification shows a large and significant effect of the 1980's expansion on poverty.
JEL Classification: I32, I38
Suggested Citation: Suggested Citation