Determinants of Pro-Poor Growth and Its Impacts on Income Share: Evidence from Ethiopian Time Series Data

The growing research interest in the pro-poorness of growth is the main issue today. Reducing economic poverty and inequality through pro-poor growth is the aim of policies in many countries. Pro-poor growth is good for poverty eradication if it can be achieved. Ethiopia is a good example of a count...

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Main Author: Gemechu Bekana Fufa
Format: Article
Language:English
Published: Wiley 2021-01-01
Series:The Scientific World Journal
Online Access:http://dx.doi.org/10.1155/2021/6645789
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author Gemechu Bekana Fufa
author_facet Gemechu Bekana Fufa
author_sort Gemechu Bekana Fufa
collection DOAJ
description The growing research interest in the pro-poorness of growth is the main issue today. Reducing economic poverty and inequality through pro-poor growth is the aim of policies in many countries. Pro-poor growth is good for poverty eradication if it can be achieved. Ethiopia is a good example of a country where growth was pro-poor between 1990 and 2018 but the pro-poor growth was reversed in 2016. The paper examined what led to pro-poor growth between 1990 and 2018 and what may have been responsible for the reversal in 2016. Unit root test reveals that all the series are nonstationary at level and stationary at first difference and have one cointegration relation between the variables. The dynamic ordinary least squares method was used to analyze the Ethiopian time series data from World Bank Development Indicators between 1990 and 2018 for the determinant of pro-poor growth. Regression analysis shows that job creation was responsible for the pro-poor growth between 1990 and 2018. The results of the analysis showed that human capital, industrial, and services growth have negative impacts on poorest people, whereas employment and agriculture growth have positive impacts on poorest people. In the richest income group, human capital, and industrial and service growths have positive impacts while agricultural growth and employment have negative impacts.
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spelling doaj-art-476bb33352104846b8801eba4bfabf952025-02-03T05:49:26ZengWileyThe Scientific World Journal2356-61401537-744X2021-01-01202110.1155/2021/66457896645789Determinants of Pro-Poor Growth and Its Impacts on Income Share: Evidence from Ethiopian Time Series DataGemechu Bekana Fufa0Department of Statistics, College of Natural and Computational Sciences, Wollega University, Nekemte, EthiopiaThe growing research interest in the pro-poorness of growth is the main issue today. Reducing economic poverty and inequality through pro-poor growth is the aim of policies in many countries. Pro-poor growth is good for poverty eradication if it can be achieved. Ethiopia is a good example of a country where growth was pro-poor between 1990 and 2018 but the pro-poor growth was reversed in 2016. The paper examined what led to pro-poor growth between 1990 and 2018 and what may have been responsible for the reversal in 2016. Unit root test reveals that all the series are nonstationary at level and stationary at first difference and have one cointegration relation between the variables. The dynamic ordinary least squares method was used to analyze the Ethiopian time series data from World Bank Development Indicators between 1990 and 2018 for the determinant of pro-poor growth. Regression analysis shows that job creation was responsible for the pro-poor growth between 1990 and 2018. The results of the analysis showed that human capital, industrial, and services growth have negative impacts on poorest people, whereas employment and agriculture growth have positive impacts on poorest people. In the richest income group, human capital, and industrial and service growths have positive impacts while agricultural growth and employment have negative impacts.http://dx.doi.org/10.1155/2021/6645789
spellingShingle Gemechu Bekana Fufa
Determinants of Pro-Poor Growth and Its Impacts on Income Share: Evidence from Ethiopian Time Series Data
The Scientific World Journal
title Determinants of Pro-Poor Growth and Its Impacts on Income Share: Evidence from Ethiopian Time Series Data
title_full Determinants of Pro-Poor Growth and Its Impacts on Income Share: Evidence from Ethiopian Time Series Data
title_fullStr Determinants of Pro-Poor Growth and Its Impacts on Income Share: Evidence from Ethiopian Time Series Data
title_full_unstemmed Determinants of Pro-Poor Growth and Its Impacts on Income Share: Evidence from Ethiopian Time Series Data
title_short Determinants of Pro-Poor Growth and Its Impacts on Income Share: Evidence from Ethiopian Time Series Data
title_sort determinants of pro poor growth and its impacts on income share evidence from ethiopian time series data
url http://dx.doi.org/10.1155/2021/6645789
work_keys_str_mv AT gemechubekanafufa determinantsofpropoorgrowthanditsimpactsonincomeshareevidencefromethiopiantimeseriesdata