engleski

Poverty persistence and economic growth- is there a link?

The nexus between poverty and economic growth has been in the focus of a vast body of economic research. Obstacles in poverty measurement and spurious regression result did not yet answer the question – is growth good for poverty? Does increase in the national output lead to poverty reduction by default? The aim of the paper is to explore the relationship between poverty and economic growth. Particular attention will be devoted to the exploration of the nexus between poverty persistence and output. The fight against poverty is the primary goal for modern economics in the 21st century (millennium development goal). Poverty today remains the main obstacle for growth and development in the world. This thesis, however, has not yet been proved beyond doubt to answer this question firmly. It is our opinion that, first, we must explain poverty persistence and then turn to the poverty – growth decomposition analysis and explore poverty – growth causality.

poverty; poverty measurement; poverty reduction; poverty policy; economic growth

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