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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Main Author: Kraay, Aart
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, D.C. 2013
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2004/03/3959873/growth-pro-poor-cross-country-evidence
http://hdl.handle.net/10986/14731
id okr-10986-14731
recordtype oai_dc
spelling okr-10986-147312021-04-23T14:03:20Z When Is Growth Pro-Poor? Cross-Country Evidence Kraay, Aart 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 POOR PEOPLE POVERTY CHANGES POVERTY GAP 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 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. 2013-08-01T18:04:32Z 2013-08-01T18:04:32Z 2004-02 http://documents.worldbank.org/curated/en/2004/03/3959873/growth-pro-poor-cross-country-evidence http://hdl.handle.net/10986/14731 English en_US Policy Research Working Paper;No.3225 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic 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
POOR PEOPLE
POVERTY CHANGES
POVERTY GAP
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
spellingShingle 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
POOR PEOPLE
POVERTY CHANGES
POVERTY GAP
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
Kraay, Aart
When Is Growth Pro-Poor? Cross-Country Evidence
relation Policy Research Working Paper;No.3225
description 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.
format Publications & Research :: Policy Research Working Paper
author Kraay, Aart
author_facet Kraay, Aart
author_sort Kraay, Aart
title When Is Growth Pro-Poor? Cross-Country Evidence
title_short When Is Growth Pro-Poor? Cross-Country Evidence
title_full When Is Growth Pro-Poor? Cross-Country Evidence
title_fullStr When Is Growth Pro-Poor? Cross-Country Evidence
title_full_unstemmed When Is Growth Pro-Poor? Cross-Country Evidence
title_sort when is growth pro-poor? cross-country evidence
publisher World Bank, Washington, D.C.
publishDate 2013
url http://documents.worldbank.org/curated/en/2004/03/3959873/growth-pro-poor-cross-country-evidence
http://hdl.handle.net/10986/14731
_version_ 1764430313548677120