When Is Growth Pro-Poor? Cross-Country Evidence

Growth is pro-poor if the poverty measure of interest falls. According to this definition there are three potential sources of pro-poor growth: (1) a high rate of growth of average incomes; (2) a high sensitivity of poverty to growth in average inc...

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Bibliographic Details
Main Author:	Kraay, Aart
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, D.C. 2013
Subjects:	ECONOMIC GROWTH THEORIES POVERTY MITIGATION POVERTY POOR PEOPLE LOW INCOME PEOPLE POVERTY GAP INEQUALITY INEQUALITY REDUCTION ABSOLUTE POVERTY ABSOLUTE POVERTY ABSOLUTE VALUE ADVERSE EFFECTS ANNUAL CHANGE ANNUAL GROWTH ANNUAL GROWTH RATE AVERAGE ANNUAL AVERAGE GROWTH AVERAGE GROWTH RATE AVERAGE INCOME AVERAGE INCOME GROWTH AVERAGE INCOMES COUNTRY COVERAGE CROSS-COUNTRY DIFFERENCES DECOMPOSITION TECHNIQUES DEPENDENT VARIABLE DEVELOPING COUNTRIES DEVELOPMENT POLICY DISTRIBUTION COMPONENT DISTRIBUTIONAL CHANGE ELASTICITY EMPIRICAL ANALYSIS EMPIRICAL GROWTH LITERATURE EMPIRICAL LITERATURE EMPIRICAL REGULARITY EMPIRICAL SECTION EXPLAINING CHANGES EXPLANATORY POWER EXPLANATORY VARIABLES FINANCIAL CRISIS FUNCTIONAL FORM GINI COEFFICIENT GINI INDEX GROWTH COMPONENT GROWTH EFFECT GROWTH PRO-POOR GROWTH RATE GROWTH RATES HIGH SENSITIVITY HOUSEHOLD INCOME HOUSEHOLD SURVEYS INCOME DISTRIBUTION INCOMES INCREASE INCREASED INEQUALITY INDIVIDUAL INCOMES INEQUALITY AVERSION INEQUALITY MEASURE INEQUALITY MEASURES INSTITUTIONAL QUALITY INTERNATIONAL TRADE LONG RUN MACROECONOMIC POLICIES MEAN INCOME MEAN INCOMES MEAN VALUE MEASUREMENT ERROR NEGATIVE GROWTH NEGATIVE RELATIONSHIP OBSERVED CHANGES POLICY PACKAGE POLICY RESEARCH POOR GROWTH STRATEGIES POVERTY CHANGES POVERTY INDEX POVERTY LINE POVERTY MEASURE POVERTY MEASURES POVERTY REDUCTION POWER PARITY PRO- POOR PRO- POOR GROWTH PRO-POOR GROWTH PROPERTY RIGHTS PROPORTIONAL CHANGE PROPORTIONATE CHANGES PURCHASING POWER PURCHASING POWER PARITY RANDOM VARIABLES RAPID GROWTH REDUCING INEQUALITY RELATIVE IMPORTANCE RELATIVE INCOME RELATIVE INCOMES RELATIVE POVERTY RESIDUAL TERM SHORT-RUN CHANGES SIGNIFICANT NEGATIVE SQUARED POVERTY GAP STANDARD DEVIATION
Online Access:	http://documents.worldbank.org/curated/en/2004/03/3959873/growth-pro-poor-cross-country-evidence http://hdl.handle.net/10986/14731

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Summary:	Growth is pro-poor if the poverty measure of interest falls. According to this definition there are three potential sources of pro-poor growth: (1) a high rate of growth of average incomes; (2) a high sensitivity of poverty to growth in average incomes; and (3) a poverty-reducing pattern of growth in relative incomes. The author empirically decomposes changes in poverty in a large sample of developing countries during the 1980s and 1990s into these three components. In the medium to long run, most of the variation in changes in poverty can be attributed to growth in average incomes, suggesting that policies and institutions that promote broad-based growth should be central to the pro-poor growth agenda. Most of the remainder of the variation in poverty is due to poverty-reducing patterns of growth in relative incomes, rather than differences in the sensitivity of poverty to growth in average incomes. Cross-country evidence provides relatively little guidance as to the policies and institutions that promote these other sources of pro-poor growth.

When Is Growth Pro-Poor? Cross-Country Evidence

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