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Was Growth in Egypt Between 2005 and 2008 Pro-Poor? From Static to Dynamic Poverty Profile

ABSOLUTE DEFINITION ABSOLUTE INCOME GROWTH ABSOLUTE SENSE ABSOLUTE TERMS ANNUAL GROWTH ANNUAL GROWTH RATE AVERAGE GROWTH AVERAGE GROWTH RATE AVERAGE INCOME AVERAGE RATE CHRONICALLY POOR CONSUMER GOODS CONSUMPTION AGGREGATE CONSUMPTION DATA CONSUMPTION EXPENDITURE CONSUMPTION PER CAPITA COUNTRY EXPERIENCES CROSS COUNTRY CROSS-SECTIONAL DATA DEPENDENT VARIABLE DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT GOALS DEVELOPMENT POLICY DISTRIBUTION CHANGE ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC FACTORS ECONOMIC GROWTH ECONOMIC INEQUALITY ECONOMIC PHENOMENA ECONOMIC SHOCKS ECONOMIC THEORY ECONOMICS LETTERS ECONOMICS LITERATURE EMPLOYMENT GENERATION EQUALIZING EFFECT ERROR TERM EXTREME POVERTY FOOD BASKET FOOD CONSUMPTION FOOD GOODS FOOD ITEMS FOOD POLICY FRONTIER REGIONS GLOBAL POVERTY GROWTH ELASTICITY GROWTH PERFORMANCE GROWTH PROCESS GROWTH RATES HIGH GROWTH HIGH INEQUALITY HIGH INFLATION HOUSEHOLD CONSUMPTION HOUSEHOLD FOOD SECURITY HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD WELFARE HOUSING HUMAN DEVELOPMENT HUMAN DEVELOPMENT REPORTS INCOME DISTRIBUTION INCOME FLUCTUATIONS INCOME GROWTH INCOME INCREASE INCOME INEQUALITY INCOME POVERTY INCOME REDISTRIBUTION INCOME STUDY INEQUALITY INEQUALITY CHANGES INEQUALITY DATA LABOUR MARKET LIVING STANDARDS LONGITUDINAL DATA MEAN CONSUMPTION MEASUREMENT ERROR MEASUREMENT ERRORS MEASURING POVERTY MIDDLE CLASS NATIONAL ACCOUNTS NEGATIVE GROWTH NEGATIVE SLOPE NON-POOR HOUSEHOLDS NUTRITION OBSERVED CHANGE OBSERVED CHANGES PER CAPITA CONSUMPTION POLICY DISCUSSIONS POLICY RESEARCH POLITICAL ECONOMY POOR POOR HOUSEHOLD POOR HOUSEHOLDS POOR PEOPLE POOR PERSON POSITIVE GROWTH POVERTY ANALYSIS POVERTY ASSESSMENT POVERTY CHANGES POVERTY DYNAMICS POVERTY GAP POVERTY HEADCOUNT POVERTY LINE POVERTY LINES POVERTY MEASURES POVERTY PROFILE POVERTY PROFILES POVERTY RATES POVERTY REDUCTION POVERTY REDUCTION STRATEGY PRIVATE CONSUMPTION PRO-POOR PRO-POOR GROWTH PROPORTIONATE CHANGES PUBLIC POLICY RANDOM VARIABLES RAPID GROWTH REAL GROWTH REDUCING POVERTY REDUCTION IN POVERTY REGIONAL DISTRIBUTION REGIONAL DUMMIES REGRESSION RESULTS RELATIVE INCOMES RELATIVE ROLE RISING INEQUALITY RURAL RURAL AREAS SCHOOLING SIGNIFICANT NEGATIVE SOCIAL MOBILITY SOCIAL POLICY SUBSISTENCE TRANSITION ECONOMIES URBAN AREAS WELFARE INDICATOR WELFARE MEASURE
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Middle East and North Africa | Egypt, Arab Republic of
2012-03-19T18:00:56Z | 2012-03-19T18:00:56Z | 2011-03-01

This paper presents a detailed picture of how sustained growth in Egypt over 2005-2008 affected different groups both above and below the poverty line. This analysis, based on the Household Income, Expenditure and Consumption Panel Survey conducted by Egypt s national statistical agency, compares the changes in the static poverty profiles (based on growth incidence curves on a cross-section of data) with poverty dynamics (relying on panel data, growth incidence curves and transition matrices). The two approaches yield contrasting results: the longitudinal analysis reveals that growth benefited the poor while the cross-sectional analysis shows that the rich benefitted even more. The paper also shows the importance of going beyond averages to look at the trajectories of individual households. Panel data analysis shows that the welfare of the average poor household increased by almost 10 percent per year between 2005 and 2008, enough to move out of poverty. Conversely however, many initially non-poor households were exposed to poverty. As a matter of fact, only 45 percent of the population in Egypt remained consistently out of (near-) poverty throughout the period, while the remaining 55 percent of Egyptians experienced at least one (near-) poverty episode. This high mobility is not a statistical artefact: it reflects the actual process of growth. Taking high vulnerability into account is essential when designing policies to protect the poor and to ensure that growth is really inclusive.

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