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Growth and Poverty Reduction in Ethiopia: Evidence from Household Panel Surveys

Author

Listed:
  • Bigsten, Arne

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Kebede, Bereket

    (Department of Economics, Addis Ababa University, and CSAE, Univ of Oxford)

  • Shimeles, Abebe

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Taddesse , Mekonnen

    (Department of Economics, Addis Adaba Univ)

Abstract
The paper investigates the poverty impact of growth in Ethiopia by analysing panel data covering the period 1994 to 1997, a period of economic recovery driven by good weather, peace, and much improved macro economic management. Unlike mostdeveloping countries, urban and rural poverty in Ethiopia are not significantly different from each other. The analysis of the structure of poverty shows asset ownership,education, type of crops planted, dependency ratios, and location to be important determinants. Decomposition of changes in poverty into the growth and redistribution components indicates that potential poverty-reduction due to the increase in real per capita income was to some extent counteracted by worsening income distribution. The implications of the results for a pro-poor policy are discussed.

Suggested Citation

  • Bigsten, Arne & Kebede, Bereket & Shimeles, Abebe & Taddesse , Mekonnen, 2002. "Growth and Poverty Reduction in Ethiopia: Evidence from Household Panel Surveys," Working Papers in Economics 65, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0065
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    File URL: http://hdl.handle.net/2077/2799
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    References listed on IDEAS

    as
    1. Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, vol. 57(2), pages 259-287.
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    More about this item

    Keywords

    Growth; poverty; households; survey;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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