Structural change, income distribution and poverty in ASEAN-4 countries
Abstract: This study analyzes the relationship between structural change and income distribution and poverty in ASEAN-4 countries –Malaysia, Indonesia, Thailand, and Philippines, over the last three decades. In particular, the study seeks to find out extent to which and how structural change would affect income distribution and poverty in ASEAN-4 countries. Accordingly, two methodological approaches are adopted. The first approach includes the analyses of sectoral composition change in total output and employment, and of the relationship between structural change and income distribution and poverty in each country by relying on descriptive statistics. The second approach includes econometric analyses, which use pooled OLS regression technique and investigate the relationship between structural change and income distribution and poverty on aggregate level. The results of analyses suggest that in general, structural change that occurred in the last three decades had both positive and negative impacts on income distribution depending on the country, whereas its effect on poverty was significant and positive in all ASEAN-4 countries.
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