A SAM-based Multiplier Model to Track Growth-Poverty-Inequality Nexus in Bangladesh

This paper offers a social accounting matrix (SAM) based analysis leading to a better understanding of the way various agents in the real economy interact, the way socio-economic groups make their living, the channels through which demand driven interventions may affect the poor, and the potential growth-poverty-inequality nexus. This is done in two steps. First, the paper reveals the economic structure of Bangladesh with a SAM framework where the macro (national accounts and input-output table) and micro (national surveys) data are juxtaposed under a unified data matrix to portray the meso level interactions of various economic agents, that is production sectors, factors of production, household groups, and other institutions. Subsequently, the SAM is used to develop a multiplier simulation model, which enables tracking and quantifying the nature and extent of the linkages among the demand driven shocks (stimuli), economic growth, income generation, and concomitant poverty and distribution implications from the perspective of different socio-economic groups in Bangladesh.