The effect of inequality and economic growth shocks on poverty rates in Arabic countries : a SVAR approach

Abstract EN

This analytical review explores the relationships between poverty rate, inequality index and economic growth rate in 21 Arabic countries for the period 1970-2013, we use in this paper SVAR approach to investigate the relationships between poverty as measured by the consumption per capita, inequality measured as Thail index and economic growth measured as GDP per capita, using data from different sources, we use both of structural impulse response functions SIRF and structural variance decomposition SVD and also the Granger causality to reinforcement the results, The paper aims at contributing to the literature by utilizing the recently develop Thail index instead of the traditional Gini coefficient; The results of the estimation showed that there is an independence between the three variables both in the short-run and long-run terms.