Browsing by Author "Tabora, Jake Rupert T."

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    The time lag between economic growth and poverty reduction in the Philippines
    (2008-04) Tabora, Jake Rupert T.; Barquilla, Kim A.; Reside, Renato
    The study answers the question: how many years, on the average, will it take before economic growth can lift poor households from poverty? It digs deeper to the relationship between economic growth and poverty reduction. By using the Morduch's Average Exit Time or the Transformed Watts Poverty Index, the study was able to obtain results indicating the time will it take before economic growth effects to poverty reduction. With the exception of the National Capital Region whose time lag is less than a year, poor households in all other regions should wait for at least one year before the growth in their income could lift them from poverty. Despite of the limiting assumptions of the model, that is, constant growth of income and poverty gap, the results of the simulation ascertain the strength of a specific economic growth in reducing poverty. The higher the average exit time, the weaker growth is in reducing poverty.