Interaction Poverty, Growth and Inequality in Senegal

This article examines the links between poverty, income inequality, and economic growth in Senegal over the period 2000-2025 using a panel VAR model estimated by the GMM method. It analyzes the extent to which growth reduces poverty and whether this growth can be described as pro-poor. The results reveal significant bidirectional interactions between the three variables. An increase in GDP reduces poverty with a lag of one to two years, but an increase in inequality raises poverty and hinders future growth. Thus, only a combination of growth and inequality-reduction policies enables inclusive development.