Determinants of poverty: Turkey and multi-country examples

In this study, the definitions of poverty and different ways of poverty measurements have been discussed in detail, the literature on the determinants of poverty at two main headings have been examined. Also poverty profile has been examined by microeconomic conditions in Turkey. Inflation, inequality, economic growth and exchange rates have been studied for their effects on poverty. After examination of, the poverty situations of all income groups according to World Bank classification have been analyzed separately by the method of regression. According to the analysis conducted by the method of dynamic panel generalized least square regression, impact on current poverty from the previous year and the current growth of poverty has been observed, yet the effects of inflation on poverty are controversial. The exchange rate is not included in the regression because the two main macroeconomic discussed determinants of poverty in the literature are used in the regression as control variables that there is multicolinearity between exchange rate, growth and inflation. This study finds that in the fight against the poverty, the most important contribution is gained with economic growth. Since high volatility in price level and exchange rates prevents the growth, inflation and exchange rate policies assessed in the perspective of the importance of growth policy. Keywords: Poverty, Inflation, Exchange Rates, Poverty ın Turkey, Inequality