Growth, Inequality, and Simulated Poverty Paths for Tanzania, 1992-2002

Although Tanzania experienced relatively rapid growth in per capita GDP in the 1995 2001 period, household budget survey (HBS) data show only a modest and statistically insignificant decline in poverty between 1992 and 2001. To assess the likely tr...

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Main Authors: Demombynes, Gabriel, Hoogeveen, Johannes G.
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, D.C. 2013
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2004/10/5278822/growth-inequality-simulated-poverty-paths-tanzania-1992-2002
http://hdl.handle.net/10986/14210
id okr-10986-14210
recordtype oai_dc
spelling okr-10986-142102021-04-23T14:03:21Z Growth, Inequality, and Simulated Poverty Paths for Tanzania, 1992-2002 Demombynes, Gabriel Hoogeveen, Johannes G. AGRICULTURAL OUTPUT AGRICULTURE BASE YEAR CONSUMPTION LEVELS ECONOMIC GROWTH ECONOMIC INFORMATION ECONOMIC STAGNATION EMPLOYMENT GDP GDP DEFLATOR GDP PER CAPITA GINI COEFFICIENT GROWTH RATE HOUSEHOLD CHARACTERISTICS HOUSEHOLD DATA HOUSEHOLDS INCOME LORENZ CURVE MACROECONOMIC GROWTH MIGRATION NATIONAL ACCOUNTS NATIONAL INCOME OUTPUT PER CAPITA POPULATION GROWTH REAL GDP UNCERTAINTY URBAN AREAS Although Tanzania experienced relatively rapid growth in per capita GDP in the 1995 2001 period, household budget survey (HBS) data show only a modest and statistically insignificant decline in poverty between 1992 and 2001. To assess the likely trajectory of poverty rates over the course of the period, changes in poverty are simulated using unit-record HBS data and national accounts growth rates under varying assumptions for growth rates and inequality changes. To this end the projection approach of Datt and Walker (2002) is used along with an extension that is better suited to taking into account distributional changes observed between the two household surveys. The simulations suggest that following increases in poverty during the economic slowdown of the early 1990s, recent growth in Tanzania has brought a decline in poverty, particularly in urban areas. Unless recent growth is sustained, the country will not meet its 2015 Millennium Development Goal (MDG). Poverty reduction is on track in urban areas, but reaching the MDG target for bringing down poverty in rural areas, where most Tanzanians live, requires sustaining high growth in rural output per capita. 2013-06-26T17:23:30Z 2013-06-26T17:23:30Z 2004-10 http://documents.worldbank.org/curated/en/2004/10/5278822/growth-inequality-simulated-poverty-paths-tanzania-1992-2002 http://hdl.handle.net/10986/14210 English en_US Policy Research Working Paper;No.3432 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research Africa Tanzania
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic AGRICULTURAL OUTPUT
AGRICULTURE
BASE YEAR
CONSUMPTION LEVELS
ECONOMIC GROWTH
ECONOMIC INFORMATION
ECONOMIC STAGNATION
EMPLOYMENT
GDP
GDP DEFLATOR
GDP PER CAPITA
GINI COEFFICIENT
GROWTH RATE
HOUSEHOLD CHARACTERISTICS
HOUSEHOLD DATA
HOUSEHOLDS
INCOME
LORENZ CURVE
MACROECONOMIC GROWTH
MIGRATION
NATIONAL ACCOUNTS
NATIONAL INCOME
OUTPUT PER CAPITA
POPULATION GROWTH
REAL GDP
UNCERTAINTY
URBAN AREAS
spellingShingle AGRICULTURAL OUTPUT
AGRICULTURE
BASE YEAR
CONSUMPTION LEVELS
ECONOMIC GROWTH
ECONOMIC INFORMATION
ECONOMIC STAGNATION
EMPLOYMENT
GDP
GDP DEFLATOR
GDP PER CAPITA
GINI COEFFICIENT
GROWTH RATE
HOUSEHOLD CHARACTERISTICS
HOUSEHOLD DATA
HOUSEHOLDS
INCOME
LORENZ CURVE
MACROECONOMIC GROWTH
MIGRATION
NATIONAL ACCOUNTS
NATIONAL INCOME
OUTPUT PER CAPITA
POPULATION GROWTH
REAL GDP
UNCERTAINTY
URBAN AREAS
Demombynes, Gabriel
Hoogeveen, Johannes G.
Growth, Inequality, and Simulated Poverty Paths for Tanzania, 1992-2002
geographic_facet Africa
Tanzania
relation Policy Research Working Paper;No.3432
description Although Tanzania experienced relatively rapid growth in per capita GDP in the 1995 2001 period, household budget survey (HBS) data show only a modest and statistically insignificant decline in poverty between 1992 and 2001. To assess the likely trajectory of poverty rates over the course of the period, changes in poverty are simulated using unit-record HBS data and national accounts growth rates under varying assumptions for growth rates and inequality changes. To this end the projection approach of Datt and Walker (2002) is used along with an extension that is better suited to taking into account distributional changes observed between the two household surveys. The simulations suggest that following increases in poverty during the economic slowdown of the early 1990s, recent growth in Tanzania has brought a decline in poverty, particularly in urban areas. Unless recent growth is sustained, the country will not meet its 2015 Millennium Development Goal (MDG). Poverty reduction is on track in urban areas, but reaching the MDG target for bringing down poverty in rural areas, where most Tanzanians live, requires sustaining high growth in rural output per capita.
format Publications & Research :: Policy Research Working Paper
author Demombynes, Gabriel
Hoogeveen, Johannes G.
author_facet Demombynes, Gabriel
Hoogeveen, Johannes G.
author_sort Demombynes, Gabriel
title Growth, Inequality, and Simulated Poverty Paths for Tanzania, 1992-2002
title_short Growth, Inequality, and Simulated Poverty Paths for Tanzania, 1992-2002
title_full Growth, Inequality, and Simulated Poverty Paths for Tanzania, 1992-2002
title_fullStr Growth, Inequality, and Simulated Poverty Paths for Tanzania, 1992-2002
title_full_unstemmed Growth, Inequality, and Simulated Poverty Paths for Tanzania, 1992-2002
title_sort growth, inequality, and simulated poverty paths for tanzania, 1992-2002
publisher World Bank, Washington, D.C.
publishDate 2013
url http://documents.worldbank.org/curated/en/2004/10/5278822/growth-inequality-simulated-poverty-paths-tanzania-1992-2002
http://hdl.handle.net/10986/14210
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