Socio-economic and environmental factors influenced pro-poor growth process: new development triangle
2019
The developmental triangle earlier comprises economic growth, income inequality, and poverty, while in this study, we extended it by incorporating environmental and resource factors, health and education factors, sectoral value added, and some other growth-specific factors for assessing pro-poor growth, by considering Bolivian economy as a case study. The elasticity estimates show that agriculture and industrial sector growth is not pro-poor due to account of high income inequality, while services sector played a vital role in country’s economic development and supports poor livelihood in a country. Energy and environmental resources negatively impact on quality of life of the poor relative to non-poor, which create income differences among them. Health and education expenditures give favors to the poor and supported the notion of pro-poor growth, while country’s per capita income and foreign direct investment inflows increase income inequality that lead towards pro-rich growth. The results conclude that, in general, Bolivian economy growth is fairly unstable, polluted, and unhealthy that biased to the poor relative to non-poor.
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