Scandinavian Working Papers in Economics
Working Papers in Economics,
University of Gothenburg, Department of Economics
No 65: Growth and Poverty Reduction in Ethiopia: Evidence from Household Panel Surveys
Arne Bigsten, Bereket Kebede, Abebe Shimeles and Mekonnen Taddesse
Additional contact information
Arne Bigsten: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Box 640, SE 405 30 GÖTEBORG
Bereket Kebede: Department of Economics, Addis Ababa University, and CSAE, Univ of Oxford
Abebe Shimeles: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Box 640, SE 405 30 GÖTEBORG
Mekonnen Taddesse: Department of Economics, Addis Adaba Univ
Abstract: The paper investigates the poverty impact of growth in Ethiopia by analysing panel data covering the period 1994 to 1997, a period of economic recovery driven by good weather, peace, and much improved macro economic management. Unlike mostdeveloping countries, urban and rural poverty in Ethiopia are not significantly different from each other. The analysis of the structure of poverty shows asset ownership,education, type of crops planted, dependency ratios, and location to be important determinants. Decomposition of changes in poverty into the growth and redistribution components indicates that potential poverty-reduction due to the increase in real per capita income was to some extent counteracted by worsening income distribution. The implications of the results for a pro-poor policy are discussed.
Keywords: Growth; poverty; households; survey
30 pages, January 16, 2002
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