Poverty, inequality and growth in selected Middle East and North Africa countries, 1980-2000

This paper uses crosscountry data and country-case studies to analyze trends in poverty, inequality and economic growth in the Middle East and North Africa (MENA) region. Compared to other regions, the MENA region has a low incidence of poverty and income inequality. Two factors account for this situation: international migration/remittances and public sector (government) employment. Since the early 1980s international migration to the Persian Gulf and Europe has helped boost the incomes of the poor in the Middle East. At the same time, many MENA countries have used government employment as a means of keeping people employed and out of poverty. Regression analysis of crosscountry data shows that both of these factors have a statistically significant impact on reducing the level and depth of poverty in the MENA region. (C) 2003 Elsevier Ltd. All rights reserved.