Assessing the impact of economic growth and income inequality on poverty reduction: The case of Macedonia

Nikoloski, Dimitar and Gveroski, Miroslav and Pechijareski, Ljupcho and Rocheska, Slavica (2016) Assessing the impact of economic growth and income inequality on poverty reduction: The case of Macedonia. Balkan and Near Eastern Journal of Social Sciences, 2 (4). pp. 134-141. ISSN 2149-9314


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The past 25 years Macedonia has gone through the process of transition that has affected every domain of the political, economic, and social life. The initial transitional recession has inter alia manifested salient effects on the labour market performance. Generally, the transitional reforms initially had negative effects on labour markets, which were manifested in declining participation rates and in persistent high unemployment. Long spells of unemployment have been leading to the degradation and dehumanisation of individuals in society, causing poverty and social exclusion and increasing the burden for the government of providing the necessary safety net. Having in mind the rising poverty during transition, the poverty reduction has become one of the highest priorities in development policy of Macedonian government. In this context, the poverty reduction objective can be achieved by faster growth and/or greater equity. With this regard, determining an optimal combination of these two means appears to be primarily a pragmatic issue. The aim of this paper is to assess the effects of growth and inequality on poverty in a country specific context for Macedonia. For this purpose we first estimate the poverty growth and inequality elasticity for the period from 2000 to 2014. In addition, we calculate inequality-growth trade-off index and pro-poor growth index which show the nature of growth in Macedonia. Finally we present some concluding remarks and formulate policy recommendations for achieving more equitable growth.

Item Type: Article
Subjects: Scientific Fields (Frascati) > Social Sciences > Economics and Business
Divisions: Faculty of Economics
Depositing User: Mr Dimitar Risteski
Date Deposited: 12 Dec 2019 07:44
Last Modified: 12 Dec 2019 07:44

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