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Title
Analysis of Economic Growth, Income Distribution and Poverty in Ethiopia using CGE Model |
Full text
https://nadre.ethernet.edu.et/record/8436 |
Date
2006 |
Author(s)
Israel, Ephrem |
Abstract
This paper presents the nature of the links between economic growth, poverty and income distribution, a central question to the study of economic development. The model adapted was the simple non-dynamic Computable General Equilibrium (CGE) model developed by International Food Policy Research Institute (IFPRI) and those used by Cogneau and Robilliard. CGE model takes into account market interaction, that is, the effects of pricing outcomes of one market in other markets, and its effects, in turn, creating ripples throughout the whole economy, perhaps even to the extent of affecting the price-quantity equilibrium in the original market. The underlying Social Accounting Matrix (SAM), which provides initial values for variables and parameters in the model, is taken from Alemayehu and Tadeles' 1999 SAM. Given the limitations of CGE models, econometric estimations is carried out to handle the households agricultural production function using the Ethiopian Rural Household Survey (ERHS). To explore the impact of an increasing agricultural productivity on poverty and inequality, simulation exercises are performed. Then, the mean income elasticity of the Foster-Greer-Thorbeck (FGT) poverty indices are estimated to examine its poverty impact. Inequality effects are explored by estimating Gini index for rural and urban households by using the Generalized Quadratic (GQ) Lorenz curve. Key words: computable general equilibrium (CGE), growth, poverty, inequality |
Relation
isbn:978-963-313-151-0; doi:10.20372/nadre/8435; url:https://nadre.ethernet.edu.et/communities/aau; url:https://nadre.ethernet.edu.et/communities/nadre |
Type of publication
info:eu-repo/semantics/doctoralThesis; publication-thesis |
Rights
info:eu-repo/semantics/openAccess; http://www.opendefinition.org/licenses/cc-by |
Identifier
10.20372/nadre/8436 |
Repository
Addis Ababa - Repository of Ethiopia
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Added to C-A: 2021-02-01;10:51:01 |
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