HIRANO, Yumeka, and Shigeru OTSUBO1 (2012). "Empirical Tests of the Poverty-Growth-Inequality Triangle under Globalization: Time Dimensions in Building Institutions" Paper presented at the 9th annual conference of the HDCA, 5-7 September 2012, Jakarta, Indonesia.

Numerous existing empirical studies agreed that economic integration contributes to poverty reduction on the basis that it accelerates growth “on average”, while being neutral to the distribution of benefits, again “on average”. However, in reality, there exists a number of “dispersion” in this “average” relation, both from the transnational and chronological aspects. This implies that there are countries in which integration to the global economy does not bring in growth. Even if it does produce growth, it does not derive poverty reduction due to inequality in income distribution and spatial distribution of industry. Hence, this research intends to empirically/statistically elaborate a “cross-national study” on the “interstate dispersion” of the impact (growth, inequality, and poverty) that international economic integration provides to the (economic) society of the developing countries, along with the specific factors that determine the outcome in each nation such as socio-economic institutions and policy packages. This paper intends to discuss the significance of “institutions” among those specific factors.