An Economic Study of the Consistency of the Poverty Line with Welfare in the Arab Gulf Cooperation Council

Abstract

The search aims at estimate the absolute poverty line in GCC, for compare it with the international poverty line, to identify the consistent with welfare in those countries. A search depends on World Bank data for the GCC countries during the period (2001-2014) in the cross-series form to estimate consumption and saving functions. To estimate the absolute poverty line at the level of the Arab Gulf Cooperation Council (GCC), dividing the study period (2001-2014) to three periods: the first period (2001-2004), and the second period (2005-2009), and the third period (2010-2014). The results of those periods that increase the per capita income of about $ 100 / year, leading to increased consumer spending per capita per year by 47,12,3 $ for the three periods, respectively. The absolute poverty line of the individual countries of the Arab Gulf Cooperation Council for the three periods was about 1420.5, 6754.7, 9963.1 USD / capita / year which is equivalent to 3.9, 18.5, 27.3 $ / person / day for the three periods, respectively. this means that an individual during those periods in which his income equivalent to 3.9, 18.5, 27.3 dollars / day has not spared any part of his income (savings is equal to zero), where barely enough to meet consumer needs, and that the individual who is earning less than this limit will not be able meet his needs. This confirms that those countries use a higher consumption pattern of welfare in determining the poverty, which exceeds global absolute poverty line, which amounts to about $ 2.25 / person / day. Moreover, the Arab states of the low hunger index compared to all the nations of the world. Therefore, the study suggests that the Gulf Cooperation Council are using the highest consumption patterns of welfare in determining the poverty, which exceeds global absolute poverty line. This means that the GCC Arab poverty line is consistent with the economic welfare of those countries. Hunger Index results also revealed that the GCC Arab states of low hunger index compared to all the nations of the world. In addition, the national absolute poverty line for these countries is higher than in the United States and lower than in Luxembourg in the last two study periods.