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Dynamics of Growth, Poverty and Inequality: A Panel Analysis of Regional Data from Thailand and the Philippines

Authors


  • We would like to thank Kaliappa Kalirajan, Garth Frazer, Cecilia Garcia-Penalosa, Stephan Klasen, Yujiro Hayami, Keijiro Otsuka, Yasuyuki Sawada, the participants of the FASID/GRIPS research seminar, the Far Eastern Meeting of the Econometric Society, and the PEGNet Conference, and an anonymous referee of this journal for their useful comments on earlier versions of this paper. We acknowledge financial support from the Hi-Stat 21st Century COE Program at Hitotsubashi University and the Academy of Finland.

Kurita: School of Economics, Kwansei Gakuin University, 1-155 Uegahara Ichiban-cho, Nishinomiya 662-8501, Japan. Email: kkurita@kwansei.ac.jp. Kurosaki (Corresponding author): The Institute of Economic Research, Hitotsubashi University, 2-1 Naka, Kunitachi, Tokyo 186-8603, Japan. Email: kurosaki@ier.hit-u.ac.jp.

Abstract

Using panel data for provinces compiled from household expenditure microdata, the present paper empirically investigates the relationships among growth, poverty and inequality in Thailand and the Philippines. The empirical model avoids the potential bias due to the fact that the entire distribution of individual-level consumption changes over time and empirical variables for growth, poverty and inequality are often compiled from the consumption distribution. The system generalized method of moments estimation results strongly suggest that inequality reduced the growth rate of per-capita consumption, and that differences in inequality explain a substantial portion of the Philippine–Thai difference in growth and poverty reduction since the late 1980s.

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