Remedy of Poverty

durongkaveroj, wannaphong (2014): Remedy of Poverty.

Abstract

Economic growth is typically recognized as the effective tool in eradicating of poverty. Unfortunately, many countries enjoy their national prosperity with no improvement in citizen's living standard. The purpose of this study is to investigate the new tool aimed at reducing poverty through log-linear model and to estimate the impact of exogenous macroeconomic shock occurred in every sector on poverty through SAM multiplier. The result reveals that poverty is not sensitive to economic growth changes while it is definitely elastic to economic development. Growth is no longer an effective tool. Additionally, Latin America needs to export the commodities from meat, heavy manufacturing, and textile sector to help getting people out of poverty.

• Item Type: MPRA Paper
• Language: English
• Keywords: poverty, economic growth, economic development, sam multiplier
• Subjects: C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C68 - Computable General Equilibrium Models; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I32 - Measurement and Analysis of Poverty; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O20 - General; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O57 - Comparative Studies of Countries

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