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Macroeconomic Adjustment and the Poor: Analytical Issues and Cross-Country Evidence.
- Source :
- Journal of Economic Surveys; Jul2004, Vol. 18 Issue 3, p351-408, 58p, 2 Diagrams, 3 Charts, 7 Graphs
- Publication Year :
- 2004
-
Abstract
- This paper studies the links between macroeconomic adjustment and poverty. The first part summarizes some of the recent evidence on poverty in the developing world. The second reviews the various channels through which macroeconomic policies affect the poor, whereas the third is devoted to the specific role of the labor market. It presents an analytical framework that captures some of the main features of the urban labor market in developing countries and studies the effects of fiscal adjustment on wages, employment, and poverty. The fourth part presents cross-country regressions linking various macroeconomic and structural variables to poverty. Higher levels and growth rates of per capita income, higher rates of real exchange rate depreciation, better health conditions, and a greater degree of commercial openness lower poverty, whereas inflation, greater income inequality, and macroeconomic volatility tend to increase it. Moreover, the impact of growth on poverty appears to be asymmetric; it seems to result from a significant relationship between episodes of increasing poverty and negative growth rates. [ABSTRACT FROM AUTHOR]
- Subjects :
- MACROECONOMICS
POVERTY
LABOR
EFFECT of inflation on income
LABOR market
LABOR supply
INCOME
GROWTH rate
FINANCIAL performance
PER capita
FOREIGN exchange rates
INTERNATIONAL banking industry
DEVELOPED countries
DEVELOPING countries
DUAL economy
EMERGING markets
BRADY bonds
MONETARY policy
CORPORATION reserves
COST allocation
STRANDED investment
ECONOMIC life of fixed assets
RESERVES (Accounting)
TAX deductions
CAPITAL losses
INCOME inequality
Subjects
Details
- Language :
- English
- ISSN :
- 09500804
- Volume :
- 18
- Issue :
- 3
- Database :
- Complementary Index
- Journal :
- Journal of Economic Surveys
- Publication Type :
- Academic Journal
- Accession number :
- 13515083
- Full Text :
- https://doi.org/10.1111/j.0950-0804.2004.00225.x