Measuring Pro-Poor Growth
It is important to know how aggregate economic growth or contraction was distributed according to initial levels of living. In particular, to what extent can it be said that growth was "pro-poor?" There are problems with past methods of a...
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Format: | Policy Research Working Paper |
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2014
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Online Access: | http://documents.worldbank.org/curated/en/2001/08/1570715/measuring-pro-poor-growth http://hdl.handle.net/10986/19560 |
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okr-10986-195602021-04-23T14:03:43Z Measuring Pro-Poor Growth Ravallion, Martin Chen, Shaohua AVERAGE INCOMES CAPITAL CONTROLS COUNTRY SIZE CRIME CUMULATIVE DISTRIBUTION CUMULATIVE DISTRIBUTION FUNCTION DEVELOPING COUNTRIES DEVELOPING WORLD DEVELOPMENT ECONOMICS DEVELOPMENT RESEARCH DIRECT INVESTMENT DISTRIBUTIONAL CHANGES DISTRIBUTIONAL COMPONENT ECONOMIC GROWTH ECONOMIC REFORM ECONOMICS LETTERS EXCHANGE RATE EXCHANGE RATE REGIME EXPLAINING INEQUALITY GROWTH PROCESS GROWTH RATE GROWTH RATES HIGH GROWTH HIGH GROWTH RATE HOUSEHOLD INCOME HOUSEHOLD WELFARE HUMAN CAPITAL INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME INEQUALITY INEQUALITY CONVERGENCE INEQUALITY FALLS INEQUALITY MEASUREMENT INEQUALITY MEASURES JOB CREATION LABOR DEMAND LIBERALIZATION LOCAL INSTITUTIONS MACROECONOMIC PERFORMANCE MEAN CONSUMPTION MEAN GROWTH MEAN INCOME MEAN INCOMES NATIONAL ACCOUNTS OBSERVED CHANGES PER-CAPITA INCOME POLICY POLICY RESEARCH POVERTY LINE POVERTY LINES POVERTY MEASURE POVERTY REDUCING POVERTY REDUCTION PRIVATE SECTOR PRO-POOR PRO-POOR GROWTH RELATIVE PRICES RESEARCH RURAL AREAS SECOND-ORDER DOMINANCE TRANSITION ECONOMIES URBAN AREAS VIOLENCE It is important to know how aggregate economic growth or contraction was distributed according to initial levels of living. In particular, to what extent can it be said that growth was "pro-poor?" There are problems with past methods of addressing this question, notably that the measures used are inconsistent with the properties that are considered desirable for a measure of the level of poverty. The authors provide some new tools for assessing to what extent the aggregate growth process in an economy is pro-poor. The key measurement tools is the "growth incidence curve," which gives growth rates by quantiles (such as percentiles) ranked by income. Taking the area under this curve up to the headcount index of poverty gives a measure of the rate of pro-poor growth consistent with the Watts index for the level of poverty. The authors give examples using survey data for China during the 1990s. Over 1990-99, the ordinary growth rate of household income per capita in China was 7 percent a year. The growth rate by quantile varied from 3 percent for the poorest percentile to 11 percent for the richest, while the rate of pro-poor growth was around 4 percent. The pattern was reversed for a few years in the mid-1990s, when the rate of pro-poor growth rose to 10 percent a year--above the ordinary growth rate of 8 percent. 2014-08-21T17:20:05Z 2014-08-21T17:20:05Z 2001-08 http://documents.worldbank.org/curated/en/2001/08/1570715/measuring-pro-poor-growth http://hdl.handle.net/10986/19560 English en_US Policy Research Working Paper;No. 2666 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific China |
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Digital Repository |
institution_category |
Foreign Institution |
institution |
Digital Repositories |
building |
World Bank Open Knowledge Repository |
collection |
World Bank |
language |
English en_US |
topic |
AVERAGE INCOMES CAPITAL CONTROLS COUNTRY SIZE CRIME CUMULATIVE DISTRIBUTION CUMULATIVE DISTRIBUTION FUNCTION DEVELOPING COUNTRIES DEVELOPING WORLD DEVELOPMENT ECONOMICS DEVELOPMENT RESEARCH DIRECT INVESTMENT DISTRIBUTIONAL CHANGES DISTRIBUTIONAL COMPONENT ECONOMIC GROWTH ECONOMIC REFORM ECONOMICS LETTERS EXCHANGE RATE EXCHANGE RATE REGIME EXPLAINING INEQUALITY GROWTH PROCESS GROWTH RATE GROWTH RATES HIGH GROWTH HIGH GROWTH RATE HOUSEHOLD INCOME HOUSEHOLD WELFARE HUMAN CAPITAL INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME INEQUALITY INEQUALITY CONVERGENCE INEQUALITY FALLS INEQUALITY MEASUREMENT INEQUALITY MEASURES JOB CREATION LABOR DEMAND LIBERALIZATION LOCAL INSTITUTIONS MACROECONOMIC PERFORMANCE MEAN CONSUMPTION MEAN GROWTH MEAN INCOME MEAN INCOMES NATIONAL ACCOUNTS OBSERVED CHANGES PER-CAPITA INCOME POLICY POLICY RESEARCH POVERTY LINE POVERTY LINES POVERTY MEASURE POVERTY REDUCING POVERTY REDUCTION PRIVATE SECTOR PRO-POOR PRO-POOR GROWTH RELATIVE PRICES RESEARCH RURAL AREAS SECOND-ORDER DOMINANCE TRANSITION ECONOMIES URBAN AREAS VIOLENCE |
spellingShingle |
AVERAGE INCOMES CAPITAL CONTROLS COUNTRY SIZE CRIME CUMULATIVE DISTRIBUTION CUMULATIVE DISTRIBUTION FUNCTION DEVELOPING COUNTRIES DEVELOPING WORLD DEVELOPMENT ECONOMICS DEVELOPMENT RESEARCH DIRECT INVESTMENT DISTRIBUTIONAL CHANGES DISTRIBUTIONAL COMPONENT ECONOMIC GROWTH ECONOMIC REFORM ECONOMICS LETTERS EXCHANGE RATE EXCHANGE RATE REGIME EXPLAINING INEQUALITY GROWTH PROCESS GROWTH RATE GROWTH RATES HIGH GROWTH HIGH GROWTH RATE HOUSEHOLD INCOME HOUSEHOLD WELFARE HUMAN CAPITAL INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME INEQUALITY INEQUALITY CONVERGENCE INEQUALITY FALLS INEQUALITY MEASUREMENT INEQUALITY MEASURES JOB CREATION LABOR DEMAND LIBERALIZATION LOCAL INSTITUTIONS MACROECONOMIC PERFORMANCE MEAN CONSUMPTION MEAN GROWTH MEAN INCOME MEAN INCOMES NATIONAL ACCOUNTS OBSERVED CHANGES PER-CAPITA INCOME POLICY POLICY RESEARCH POVERTY LINE POVERTY LINES POVERTY MEASURE POVERTY REDUCING POVERTY REDUCTION PRIVATE SECTOR PRO-POOR PRO-POOR GROWTH RELATIVE PRICES RESEARCH RURAL AREAS SECOND-ORDER DOMINANCE TRANSITION ECONOMIES URBAN AREAS VIOLENCE Ravallion, Martin Chen, Shaohua Measuring Pro-Poor Growth |
geographic_facet |
East Asia and Pacific China |
relation |
Policy Research Working Paper;No. 2666 |
description |
It is important to know how aggregate
economic growth or contraction was distributed according to
initial levels of living. In particular, to what extent can
it be said that growth was "pro-poor?" There are
problems with past methods of addressing this question,
notably that the measures used are inconsistent with the
properties that are considered desirable for a measure of
the level of poverty. The authors provide some new tools for
assessing to what extent the aggregate growth process in an
economy is pro-poor. The key measurement tools is the
"growth incidence curve," which gives growth rates
by quantiles (such as percentiles) ranked by income. Taking
the area under this curve up to the headcount index of
poverty gives a measure of the rate of pro-poor growth
consistent with the Watts index for the level of poverty.
The authors give examples using survey data for China during
the 1990s. Over 1990-99, the ordinary growth rate of
household income per capita in China was 7 percent a year.
The growth rate by quantile varied from 3 percent for the
poorest percentile to 11 percent for the richest, while the
rate of pro-poor growth was around 4 percent. The pattern
was reversed for a few years in the mid-1990s, when the rate
of pro-poor growth rose to 10 percent a year--above the
ordinary growth rate of 8 percent. |
format |
Publications & Research :: Policy Research Working Paper |
author |
Ravallion, Martin Chen, Shaohua |
author_facet |
Ravallion, Martin Chen, Shaohua |
author_sort |
Ravallion, Martin |
title |
Measuring Pro-Poor Growth |
title_short |
Measuring Pro-Poor Growth |
title_full |
Measuring Pro-Poor Growth |
title_fullStr |
Measuring Pro-Poor Growth |
title_full_unstemmed |
Measuring Pro-Poor Growth |
title_sort |
measuring pro-poor growth |
publisher |
World Bank, Washington, DC |
publishDate |
2014 |
url |
http://documents.worldbank.org/curated/en/2001/08/1570715/measuring-pro-poor-growth http://hdl.handle.net/10986/19560 |
_version_ |
1764440003011674112 |