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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Main Authors: Ravallion, Martin, Chen, Shaohua
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2001/08/1570715/measuring-pro-poor-growth
http://hdl.handle.net/10986/19560
id okr-10986-19560
recordtype oai_dc
spelling 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
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 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
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