Growth equity and sectoral decompositions of aggregate poverty changes in Cameroon

Abstract

PurposeThe purpose of this paper is to provide insight to policy-makers into a framework for action, which is needed to effectively reduce poverty in its monetary and non-monetary dimensions.Design/methodology/approachSpecifically, an exact decomposition analysis is conducted that is based on the Shapley value method, and investigated the growth and redistribution effects as well as changes due to mobility and sector-specific effects of the variation in both income/expenditure and non-income poverty dimensions.FindingsGrowth in mean consumption and household assets accounted for the bulk of the improvement in poverty reduction and the results complement the evidence obtained from the “sectoral decomposition” of poverty in Cameroon which may indeed have a strong bearing on the sectoral shares of poverty. The temptation is resisted, however, not to deny that redistribution also has an important role to play, yet there must be severe limits to what can be achieved by growth neutral redistribution. The redistribution effect had an ameliorating tendency in household asset deprivation among farming households.Originality/valueThis paper is a well-written piece using quite rigorous and interesting methodological approach. To obtain a measure of non-income dimensions of well-being, the authors constructed composite indices on household assets reflecting household access to a range of physical assets and services including human capital by polychoric principal component analysis method.