Pattern Of Income Distribution Research Articles

The Cobb-Douglas Production Function and the Old Bowley's Law

Bowley's law, also referred to as the law of the constant wage share, was a noteworthy empirical finding in economics, suggesting that a nation's wage share tended to remain stable over time, as observed through most of the 20th century. The wage share represents the proportion of a country's economic output that is distributed to employees as compensation for their labor, usually in the form of wages. The term ''Bowley's law'' was coined in 1964 by Paul Samuelson, the first American laureate of the Nobel memorial prize in economic sciences. He attributed this principle to Sir Arthur Bowley, an English economist, mathematician, and statistician. In this paper, we introduce a mathematical model derived from data for the American economy, originally employed by Cobb and Douglas in 1928 to validate the renowned Cobb-Douglas production function. We utilize symmetry methods, particularly those developed by Peter Olver, to elucidate the validity of Bowley's law within our model's framework. By employing these advanced mathematical techniques, our objective is to elucidate the factors contributing to the stability of the wage share over time. We demonstrate that the validity of both Bowley's law and the Cobb-Douglas production function arises from the robust growth of an economy, characterized by expansion in capital, labor, and production, which can be approximated by an exponential function. Through our analysis, we aim to offer valuable insights into the underlying mechanisms that support Bowley's law and its implications for comprehending income distribution patterns in economies.

Study on the Dynamic Relationship between Education Investment Policies and Income Distribution

The core objective of this study is to deeply explore the complex interactive relationship between education investment policies and income distribution. The aim is to comprehensively analyze the specific mechanism of education investment in shaping the income distribution pattern, and to examine in detail how income distribution inequality issues feedback and affect the design, implementation, and effectiveness of education investment policies. To achieve this goal, the study will systematically review relevant theoretical frameworks and empirical research results, aiming to reveal the deep logic of mutual influence and causality between the two. The research will focus on the impact path of education investment on income distribution, including but not limited to: improving individual human capital, enhancing employment competitiveness, and thereby affecting individual income; By improving the overall education level of society, promoting the upgrading of industrial structure, indirectly affecting the overall income distribution structure; And the impact of the differential distribution of education investment between urban and rural areas and regions on income inequality. We will conduct a detailed analysis of how changes in education investment in dimensions such as scale, structure, and efficiency can be transformed into reshaping forces on income distribution patterns. We will delve into the reverse shaping effect of income inequality on education investment policies and propose targeted policy recommendations.

Monthly income patterns and earnings management in banking

ABSTRACT This study makes use of 38,070 loan portfolio-month observations in the 2009–2017 recessionary period and investigates whether monthly loan portfolio income distribution patterns can indicate earnings management in banking. We find that discontinuous monthly income patterns throughout the year based on Gini estimations are clear telltale signs of reported income manipulation detected via a Regression Discontinuity Design. We highlight that banks manipulate reported income by varying their loan loss provisions and reversals throughout the year. Specifically, they increase provisioning in the early months and release them towards year-end. This monthly-based strategy is employed by bank managers to influence the annual financial numbers reported in year-end public financial statements. The study contributes to understanding how banks internally manage provisioning on-average within a year, revealing a key mechanism of earnings management in the banking sector. The study fills a significant research gap in the existing literature on bank earnings management, primarily focused on quarterly earnings research.

Research on the Impact of Digital Inclusive Finance and Rural Household Human Capital Investment on Urban-rural Income Gap

The high-quality development of an economy and society is reflected in the sustained growth of the economic aggregate and in the fruits of development being shared by the majority of residents. Therefore, a reasonable income distribution pattern is an important guarantee for sustainable economic development. However, the excessively high urban-rural income gap has become a characteristic fact in China's economy and society. In order to curb the continuous expansion of the urban-rural income gap, our country has clearly pointed out the path of " socialist rural revitalization with Chinese characteristics " . Against this background, it is important to explore the yet-to-be-clarified impact of the human capital investment of Chinese farmers on the urban-rural income gap. At the same time, the emergence of digital inclusive finance provides a new perspective for finance to help converge the urban-rural income gap. Digital inclusive finance mainly targets disadvantaged groups excluded by traditional finance. Rural residents with low incomes are naturally among its targets. Converging the income gap between urban and rural areas should also be one of the responsibilities of digital inclusive finance. This article first reviews the theories and literature related to digital inclusive finance and the urban-rural income gap. By summarizing the reasons for the formation of the urban-rural income gap and the conditions for its convergence, it analyzes the important role of finance in it and the limitations of traditional financial development. , and further deduced the impact of the development of digital inclusive finance on the urban-rural income gap. It is also recognized through public data that educational human capital and migrant human capital have greatly narrowed the urban-rural income gap in the eastern region, verifying that human capital investment has an incremental role in economic development levels and policy guidance.

Research on the income distribution effect of factor allocation efficiency changes among China's three major industries.

This paper aims to study the impact of correcting the factor misallocation among China's three major industries on China's income gap and income distribution pattern. By using the industry Panel data at the provincial level in China, we measure the degree of factor misallocation among the three major industries in China's provinces from 2002 to 2019 by building a factor misallocation measurement model, and then uses reverse thinking to compare the income gap under the condition of no factor misallocation with the actual income gap, and then obtains the impact of factor misallocation on the income gap, And use this method to focus on analyzing the impact of factor allocation efficiency changes among the three industries on income distribution pattern. The research finds that: (1) There is a serious factor misallocation among the three major industries in each province. From the perspective of subdivided factors, the factor misallocation among the three major industries in China's provinces is mainly caused by labor misallocation. Factor misallocation shows a trend of convergence first and then divergence among regions. (2) There is a strong heterogeneity in the explanatory power of different dimensions of the income gap of factor misallocation among the three major industries in China's provinces. Among them, correcting the misallocation of total factors among the three major industries in China's provinces can only narrow the internal income gap of the tertiary sector of the economy, and expand the internal income gap between the primary and secondary industries. (3) The impact of correcting the total misallocation, capital misallocation and labor misallocation among the three industries on the income gap among industries or provinces is narrowing first and then expanding. (4) Further research shows that although the level of factor misallocation among provinces in China is significantly lower than the average level of factor misallocation among the three major industries within each province, it has a stronger explanatory power for the inter-provincial income gap. Correcting the total factor misallocation and labor misallocation among provinces can significantly reduce the inter-provincial income gap in China. Correcting the total factor misallocation and labor misallocation among provinces in 2019 can reduce the inter-provincial income gap by 51.48% and 81.68% respectively. Only correcting the capital misallocation among provinces will expand the inter-provincial income gap, and only correcting the capital misallocation among provinces in 2019 will expand the inter-provincial income gap by 112.21%.

Digital Economy, Factor Allocation Efficiency of Dual-Economy and Urban-Rural Income Gap

The digital economy has significant economic structural transformation effects and income distribution effects. This article analyzed the impacts and mechanisms of digital economy development on the efficiency of dual-economic factor allocation and the urban–rural income gap from a theoretical perspective, empirically tested by using China’s provincial panel data from 2008 to 2017 and a bidirectional fixed effects model. It was found that the development of the digital economy has significantly improved the efficiency of factor allocation in the dual-economy, which has a significant improvement effect on the allocation efficiency of capital and labor. The development of the digital economy alleviates the problem of surplus labor factors and insufficient capital input in the agricultural sector by promoting nonagricultural employment and the flow of capital factors to the agricultural sector. The development of the digital economy can significantly reduce the urban–rural income gap by improving the efficiency of factor allocation in the dual-economy. The main contribution of this article is verifying that the flow of production factors triggered by the digital economy has a configuration efficiency improvement effect and further extending the economic structure effect of the digital economy to the field of distribution, examining the feasible path of optimizing the income distribution pattern of the digital economy.

City affordability and residential location choice: A demonstration using agent based model

Who lives where and why? – is a prominent issue studied in the field of urban economics. With urbanization on the rise, housing and transportation policies must strive to strike a balance between accessibility and affordability. The study builds an economic rational agent-based model, for a hypothetical monocentric city, to simulate the urban pattern that emerges from households' residential location choice as they aim to minimize their expenditure on rent and commute under different scenarios. The model highlights the significance of housing and transportation costs as a spatial policy tool in shaping urban growth. By manipulating these costs, cities can promote compactness, increase affordability, and result in a more homogeneous density and income distribution pattern. The study also finds that mode of travel plays a crucial role in determining residential choice, with private transportation users tending to reside in the city's inner areas and public transportation users opting for outer areas. However, when public transportation is heavily subsidized, this pattern is reversed. We also find that an increase in income inequality and plot size variability can lead to income-based segregation in the city. Our study findings, validated through a review of the relevant empirical literature, provide valuable policy directions into the underlying mechanisms that shape the urban growth pattern.

Has Electronic Commerce Growth Narrowed the Urban–Rural Income Gap? The Intermediary Effect of the Technological Innovation

In the internet era, the development of e-commerce has had an important impact on all aspects of society. Many previous studies focused on the social and economic effects of the development of e-commerce. However, previous studies paid little attention to the impact of e-commerce development on the urban–rural income gap. Here, the influence of electronic commerce growth on the urban–rural income gap is investigated based on Chinese provincial panel data. The result reveals that electronic commerce growth measured by per capita express volume (pair value) can effectively explain the urban–rural income gap, i.e., the income gap between cities and the countryside is reduced with the rise of the electronic commerce growth level after a series of possible factors for the urban–rural income gap (e.g., urbanization rate, industrial proportion, dependency ratio, and human capital) are controlled. In the abovementioned conclusions, the influence of electronic commerce growth on the income gap between cities and the countryside still takes on significance even after the use of the post office number and the mileage of grade roads in 1991 as the instrumental variables of the current electronic commerce growth and the robustness test. The growth of electronic commerce is a vital new approach for adjusting the urban–rural income distribution pattern. The study further reveals that electronic commerce growth does not directly affect the urban–rural income gap by affecting technological innovation. The research results of this study provide a reference for electronic commerce growth and the income distribution of cities and the countryside.

INCOME INEQUALITY IN EMERGING MARKET ECONOMIES: A MULTI-COUNTRY STUDY OF BRAZIL, INDIA AND SOUTH AFRICA

Inequality refers to the extent to which income is evenly distributed across a population (IMF, 2022). The World Inequality Report (WIR, 2022) reveals the latest trends in global income inequality. It shows that the richest 10% of the global population currently earns 52% of global income, while the poorest half of the population takes 8.5% of it. In emerging market economies, indications are that income inequality is rising; sometimes accompanied by accelerating economic growth. Reports reveal that Brazil’s six richest individuals command the same wealth associated with the poorest 50% of the population, or about 100 million people. The World Inequality Report (2021) reveals India as a poor and unequal country, with the bottom half of the population earning only 13% of the nation’s income, while the top 10% controls 57% by 2021. In South Africa, the IMF (2020) acknowledges that the nation’s inequality has remained at high levels, perhaps the highest in the world. This is characterized by a highly skewed income distribution pattern, with the top 20% of the population controlling 68% of national income. These developments hold grave implications for emerging markets, particularly their ability to meet the 2030 Sustainable Development Goals. The main objective of this paper is to explore income inequality in emerging market economies, with a multi-country study of Brazil, India and South Africa. The methodological approach to the study involves both qualitative and quantitative analytical techniques. It relies on secondary data in publications from various sources, complemented by interviews of stakeholders in the study areas. Findings reveal the income inequality is undermining economic growth and development in emerging markets, fueling conflicts and triggering migration in some countries. The paper presents recommendations, underpinned by progressive taxation, social safety nets, gender equality, development of social services, and leveraging economic and financial incentives for labour-intensive industries.

Analisis Faktor yang Mempengaruhi Ketimpangan Distribusi Pendapatan di Provinsi Daerah Istimewa Yogyakarta Tahun 2012-2021

Based on statistical data and publications published by BPS shows that Special Region of Yogyakarta is the province with the highest Gini Index ratio in Indonesia. The purpose of this study is to examine the effect from economic growth, the human development index and the open unemployment rate to the income distribution inequality in the Special Region of Yogyakarta Province In this case the analytical tool used is through panel data regression analysis where the existing data is taken from BPS or in the form of secondary data in the period 2012-2021 by using fixed effect model (FEM) as the chosen model. In this study was found that simultaneously show that economic growth, human development index and open unemployment rate simultaneously had a significant effect. Partially, the economic growth variable has a positive and insignificant effect on the inequality of income distribution because of the increasingly unequal income distribution pattern. The human development index variable has no significant negative effect on the inequality of income distribution because good labor productivity will be able to reduce the level of inequality. Meanwhile, the open unemployment rate has a positive and significant effect because the absorption of the existing workforce is still not maximal.

Analisis Program Peningkatan Ketahanan Pangan Rumahtangga Petani Ikan Nila Di Kecamatan Pringgarata

This study aims to: 1) analyze the income sources of tilapia famer’s household , 2) describe the income distribution pattern of farmers' households, 3) describe the distribution pattern of farmer household expenditures, and 4) analyze the level of food security of farmer households. This research uses a descriptive method. Research with descriptive method designed in the form of survey research. Data was collected using triangulation techniques, namely by combining three research techniques together, namely: (1) interview techniques (interviews) with respondents; (2) field observations (field observations); and (3) literature study (desk study). The research area is Pringgarata District, Central Lombok Regency. From the 11 villages, a village was chosen, namely Pringgarata village. Furthermore, data collection on farmer households was carried out. The farmer households that became the research sample were selected by random sampling as many as 15 farmer households. Farmer households here are farmer households who have jobs as tilapia fish cultivators. The results of the study concluded that first, the sources of household income for tilapia fish cultivators in Pringgarata village varied. Likewise, the household expenditure of farmers also varies. Second, the distribution pattern of farmers' household income is sourced from tilapia cultivation and outside tilapia cultivation. Activities outside of tilapia cultivation such as farming (rice, secondary crops, vegetables), trading, workshops, labor. The average household income of farmers for one season or 6 months is IDR 28,548,000, -,. Third, the distribution pattern of farmer household expenditures in Pringgarata village is divided into food and non-food expenditures. The average household expenditure of farmers during one season is IDR 7,610,600, for food is IDR 3,683,100, and for non-food is IDR 7,610,600, - and fourth, household food security of tilapia fish cultivators in Pringgarata village. belong to food-secure households.

COVID-19 in US Economy: Structural Analysis and Policy Proposals

Based on an input–output framework, this paper analyses the intersectoral structure of the US economy and estimates the COVID-19 multiplier effects on this economy. For this purpose we employ a model of matrix multipliers—which, except for the technical conditions of production, also considers imports, income distribution, savings, and consumption patterns—using data from the input–output table of the US economy for the year 2015, i.e., the latest available data at the time of this research (a few months after the US presidential election). Furthermore, we detect the key commodities that are considered appropriate for implementing economic policies in the short term, i.e., for boosting growth and job creation, as well as the commodities that are suitable for long-term, structural policies. Our findings suggest that short-term policies for a direct recovery after COVID-19 should be based on public consumption expenditures and investments as well as through exports. It is also shown that there is a great variety of short-term and long-term policies that can be adjusted according to the challenges of the US economy. Finally, for reasons of completeness, we estimate the impact of the main plans of the American president’s policy program, i.e., the “American Jobs Plan and the American Families Plan”, and we show that both plans would cumulatively increase the US output by about USD 6.07 trillion over the next ten years, not only helping the US economy recover from the COVID-19 shock but also ensuring macroeconomic stability and social cohesion.

Income inequality and distribution patterns in the cassava value chain in the Oyo State, Nigeria: a gender perspective

PurposeThis study analyses income inequality and distribution patterns among key actors in the cassava value chain. The study also identifies factors that influence profit of key actors in the cassava value chain.Design/methodology/approachThe study was conducted in Oyo State, Nigeria, using primary data from 620 actors, consisting of 400 farmers, 120 processors and 100 traders in the cassava value chain. The Gini coefficient was used to estimate income inequalities within and between actors. Multiple linear regression was applied to identify factors that influence the profit of the actors in the cassava value chain.FindingsThe result shows a gender pattern in the participation in the cassava value chain: men dominate in the production, whereas women mostly engage in processing and marketing of processed cassava products. We also find that incomes are unequally distributed among actors, favouring traders and processors more than farmers in the value chain. Women are better off in processing and trading of value-added products than in the raw cassava production. Spatial differences also contribute to income inequality among farmers in the cassava value chain. An increase in farmers and processors’ incomes reduces inequality in the value chain while an increase in traders’ income widens inequality. Age is significantly negatively correlated with actors’ profit at 1%, while educational level significantly increases their profit at 5%. Processors and traders with large households have a higher profit. We also find that farm size, experience and labour input have significant positive effects on farmers’ profit only at 5%. Membership in an association increases farmers and processors’ profit at 1 and 10%, respectively.Practical implicationsThe study recommends that agricultural policies that promote agrifood value chains should aim at minimizing income inequality by targeting vulnerable groups, particularly female farmers to achieve sustainable development in rural communities.Originality/valueExisting studies recognise income inequality in agricultural value chains in sub-Saharan Africa. However, there are few rigorous quantitative studies that address this pressing issue. Our paper fills this knowledge gap and suggests ways to minimise income inequality in the agri-food value chain, using the example of the cassava value chain in Nigeria.

Stylized Fact Approach to Income Distribution Pattern among Fish Seed Producers in Jharkhand, India

One of the serious impediments to sound policy on freshwater aquaculture is the lack of farm-level data and consistent empirical evidence, especially on income. To understand the income generation through fish seed production through the community participation approach initiative of the Directorate of fisheries, Jharkhand, we analyzed the income distribution pattern of 498 fish seed producers of Jharkhand. The data was collected from different districts of Jharkhand by DoF for the year 2017-18. The results revealed high gender disparity in fish seed production as only 2.41 per cent were found out to be women. It was observed that fish seed production has a high potential to be a very lucrative business as income showed wide variation ranging fromRs.50,000 to Rs.27,50,000. The Lorenz curve analysis showed moderate-income inequality indicating a higher concentration of income with the top 10 per cent of the population. Further investigation showed that the top 10 per cent of the population earned 60 per cent of total cumulative income which was higher than the national average which was 57 per cent while the bottom 50 per cent of the population earned just 20 per cent of total cumulative income. The income inequality from the GINI co-efficient was 0.48 which was lower than the national average which was 0.55. The study concludes that though income inequality is lower than the national average however the concentration of income with top 10 per cent was higher than the national average. A more detailed study on fish seed production is needed to understand the underlying facts for the disparity in income distribution among fish seed producers.

Research on national and provincial income gap from 2015 to 2019 - based on Gini coefficient

At present, China is in a period of rapid development, but there are still problems of unbalanced and insufficient development. How to judge the current income gap in China, so as to promote a reasonable income distribution pattern, is an urgent problem to be solved. Then this paper uses the Gini coefficient to judge the national and provincial income gap from 2015 to 2019. However, at present, China has not officially released the provincial Gini coefficient, so this paper will use the most original calculation method of the Gini coefficient, use the officially released distributable income data divided into five parts of income to calculate the Gini coefficient, and analyze the income gap based on the calculation data, so as to draw conclusions and put forward relevant suggestions.

Analysis of Rural Talent Scale in Hebei Province Based on Fractional GM (1,1) and the Grey Relational Analysis Model

Talents are the key of rural revitalization. Under the background of Beijing-Tianjin-Hebei Coordinated Development, Hebei Province has always put talent revitalization at the core of rural revitalization. In order to promote the process of rural revitalization in Hebei Province, it is very important to understand the scale of rural talents. Firstly, the GM (1,1) model was used to predict the scale of rural talents in Hebei Province from 2020 to 2025. The prediction results showed that, in the rural development of Hebei Province in the next few years, the scale of production-oriented talents would gradually decline, while the scale of service-oriented, business-oriented, management-oriented, and skilled talents would show varying degrees of growth. Secondly, the grey relational analysis was used to analyze the importance of different factors for rural talents. Through the grey relational analysis, it was found that the infrastructure had the greatest impact on production-oriented talents, the agricultural industrialization operating rate had the strongest impact on service-oriented talents, and the urban-rural income level had the greatest impact on business-oriented talents, management-oriented talents, and skilled talents. Finally, according to the results of the GM (1,1) model and grey relational analysis, aiming at different types of rural talents, this paper puts forward countermeasures and suggestions from the aspects of strengthening rural infrastructure construction, improving rural medical and health conditions and improving income distribution pattern.

Inequality and social polarization in Chilean municipalities

The social inequality associated with the current pattern of income distribution in Chile remains a subject of interest, as much remains to be learned about the trends in this connection in differing contexts. The aim of this study is to analyse the existing degrees of inequality and social polarization at the municipal (comuna) level arising from the current pattern of income distribution in the country. The measurements used for this purpose are autonomous per capita income and total per capita income. Seventy-eight municipalities in five regions of northern, central and southern Chile were studied. The results confirm the existence of a significant degree of inequality in terms of income distribution and a marked degree of polarization at the municipal level. These findings underscore the need for targeted income redistribution policies at this level to address inequality and polarization, both of which have been linked to social discontent stemming from the conflicts and social injustices that are created and intensified by these phenomena.

Corporate Bond Financing and Labor Income Share

The growth of residents’ income plays an important role in promoting the sustainable development of Chinese economy. And increasing labor income share is an important mechanism to improve residents’ income and distribute benefits from economic development. Previous studies have shown that the decline of labor income share will have a negative impact on the macro-economy, resulting in the deterioration of income distribution pattern, low consumption level and imbalance of economic structure. In particular, combined with the characteristics of China’s super large-scale market and potential advantages of domestic demand, the central government proposes to build a new development pattern with “large domestic circulation as the main body”. In this context, it is of great theoretical and practical significance to explore how to increase labor income share for expanding domestic demand, reviving the economy, and realizing the long-term equilibrium of stable growth and risk prevention.Based on the data of A-share listed companies from 2003 to 2019, this paper finds that there is a significant positive correlation between bond financing and labor income share. In addition, after using the PSM-DID model, regression following Rajan and Zingales（1998）, controlling high-order fixed effect, 2SLS regression based on instrumental variables and exogenous shock based on short-term financing bond, the conclusion is still robust. Further research shows that:（1）Bond financing increases labor income share by reducing the overall debt cost. And it has a spillover effect on bank loans, that is, bond financing can promote labor income share by reducing the interest rate of bank loans.（2）The effect of different types of bonds on labor income share is heterogeneous, and the convenience of bond issuance is an important factor affecting labor income share.（3）The competitive hypothesis of “wage erodes profit” does not affect our findings.The contributions of this paper are as follows: Firstly, existing literature finds that financial development and enterprise debt level have an important impact on labor income share. However, the literature focusing on financial development mainly discusses the relationship between the expansion of banking sectors and the development of stock market and labor income share, ignoring the impact of bond market. Moreover, the literature finds that debt level can affect labor income share by influencing bargaining power in the process of negotiation between enterprises and workers. This study examines whether and how the debt structure affects labor income share based on the assumption of a certain level of debt. Therefore, it broadens the understanding of the determinants of labor income share.Secondly, previous studies mainly discuss the economic consequences of bond financing from the perspectives of earnings management, accounting conservatism, social financing cost, bank loan cost, corporate innovation, and cash dividend policy. However, these studies mainly focus on the relationship between bond financing and accounting information quality and investment behavior. This study extends the research on the economic consequences of bond financing from the perspective of distribution effect focusing on labor income share.Thirdly, this paper reveals the mechanism of bond financing affecting labor income share. That is, bond financing can reduce the financial burden of enterprises by reducing the overall cost of debt financing, and then increase labor income share; moreover, bond financing has a spillover effect on bank loans, which means it can promote labor income share by reducing the interest rate of bank loans.

Interlinkages among Terrorism, Macroeconomic Instability, Political Instability, and Economic Growth in Pakistan

This study attempts to establish the relationship between three types of instabilities and economic growth. Political instability, macroeconomic instability, terrorism, and economic growth are analyzed for the period of 1970 to 2019 in Pakistan. The study constructs the indices of the above-mentioned variables by adding some new variables. Results show that terrorism, political instability, macroeconomic instability, and GDP per capita have long-run associations. GDP per capita and political instability is positively related to terrorism. It indicates that political instable environment paves the way for terrorists to achieve their targets in Pakistan. However, the positive association of GDP per capita to terrorism is due to uneven income distribution pattern. It stimulates deprived groups to become a part of violent activities. Furthermore, results show that macroeconomic performance of a country has no significant effect on terrorist activities but persistent poor performance increases the probability of terrorism. Therefore, in the long-run, macroeconomic instability has positive influence on terrorism. Causality relationships indicate no link between political instability and macroeconomic instability. However, terrorism causes both political and macroeconomic instability in Pakistan.

Public Perception of the Effects of Poverty on Economic Growth in Ghana

The paper examined public perception of the effects of poverty on economic growth in Ghana. It specifically examined public perception on the relationship between poverty and economic growth in Ghana using a combination of descriptive statistics and Logit Model to analyse the primary data collected. The result revealed that poverty does not lower investment, per capita income was not high enough to reflect Ghana’s resources, it was also discovered that poverty programmes are effective and standard of living were inadequate. The paper further discovered that unemployment rate was not too high in Ghana. Corruption does not pose any threat to poverty and economic growth. There existed low income inequality between the rich and the poor but income was not evenly distributed while inflation does not increased the plight of the poor or deteriorates the living standard of the poor. The result further discovered that government performance was inadequate, lifespan was low, Ghana was able to meet MDGs goal by the end of 2015 but may not be able to sustain the achievement beyond 2015. Above all, poverty decisively slowed down the pace of economic growth in Ghana. The result of the Logit model showed that unemployment, corruption, secondary school enrollment, government policy, life-expectancy and poverty retarded economic growth while investment, aggregate consumption expenditure, pattern of income distribution and inflation, enhanced economic growth in Ghana. The result further revealed that only investment, aggregate consumption expenditure and inflation are the determinants of economic growth in Ghana. The paper concluded that poverty slowed down the pace of economic growth in Ghana. The paper therefore recommends that government should introduce and maintain policies that will permit improved relationships between poverty and other variables except investment, welfare and inflation so that they can positively and significantly contribute to increase economic growth in Ghana.