Did Growth Become Less Pro-Poor in the 1990s?

The author analyzes the stability of the empirical relationship between growth and changes in inequality over time. He concludes that while during the 1970s and 1980s the growth process was not accompanied by increases in inequality, during the 1990s a positive and significant correlation appears in...

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Main Author:	Lopez, Humberto
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ABSOLUTE VALUE ANNUAL GROWTH ANNUAL GROWTH RATE ANNUAL RATE COUNTRY EFFECTS DATA SET DECOMPOSABLE POVERTY MEASURES DENSITY FUNCTION ECONOMIC GROWTH ECONOMIC REVIEW ECONOMICS ECONOMICS LETTERS EMPIRICAL LITERATURE EMPIRICAL RELATIONSHIP EMPIRICAL RESULTS ERROR TERM ESTIMATION TECHNIQUES EXPLANATORY VARIABLE FIXED EFFECTS FIXED EFFECTS ESTIMATOR GINI COEFFICIENT GROWTH GROWTH DATA GROWTH PRO-POOR GROWTH PROCESS GROWTH RATE GROWTH RATES GROWTH-INEQUALITY RELATIONSHIP HEADCOUNT POVERTY HOUSEHOLD INCOME IMPACT OF INEQUALITY INCOME INEQUALITY INEQUALITY DATA INEQUALITY RELATIONSHIP INEQUALITY WILL LOG GINI LOW INCOME MEASURING INCOME INEQUALITY 0 HYPOTHESIS OBSERVED GROWTH OBSERVED GROWTH RATE PER CAPITA GROWTH PER CAPITA INCOME PER CAPITA INCOME LEVEL PER CAPITA INCOME LEVELS POINT ESTIMATE POINT ESTIMATES POLICY RESEARCH POSITIVE CORRELATION POSITIVE GROWTH POVERTY POVERTY GAP POVERTY HEADCOUNT POVERTY IMPACT POVERTY LINE POVERTY MEASURE POVERTY RATE POVERTY REDUCTION PRO-POOR REGRESSION TECHNIQUES RELATIVE INCOMES SENSITIVITY ANALYSIS SIGNIFICANT ATTENTION SIGNIFICANT CORRELATION SQUARE POVERTY GAP SQUARED POVERTY GAP STRUCTURAL BREAK TRADE LIBERALIZATION
Online Access:	http://documents.worldbank.org/curated/en/2006/06/6822659/growth-less-pro-poor-1990s http://hdl.handle.net/10986/8460

id	okr-10986-8460
recordtype	oai_dc
spelling	okr-10986-84602021-04-23T14:02:40Z Did Growth Become Less Pro-Poor in the 1990s? Lopez, Humberto ABSOLUTE VALUE ANNUAL GROWTH ANNUAL GROWTH RATE ANNUAL RATE COUNTRY EFFECTS DATA SET DECOMPOSABLE POVERTY MEASURES DENSITY FUNCTION ECONOMIC GROWTH ECONOMIC REVIEW ECONOMICS ECONOMICS LETTERS EMPIRICAL LITERATURE EMPIRICAL RELATIONSHIP EMPIRICAL RESULTS ERROR TERM ESTIMATION TECHNIQUES EXPLANATORY VARIABLE FIXED EFFECTS FIXED EFFECTS ESTIMATOR GINI COEFFICIENT GROWTH GROWTH DATA GROWTH PRO-POOR GROWTH PROCESS GROWTH RATE GROWTH RATES GROWTH-INEQUALITY RELATIONSHIP HEADCOUNT POVERTY HOUSEHOLD INCOME IMPACT OF INEQUALITY INCOME INEQUALITY INEQUALITY DATA INEQUALITY RELATIONSHIP INEQUALITY WILL LOG GINI LOW INCOME MEASURING INCOME INEQUALITY 0 HYPOTHESIS OBSERVED GROWTH OBSERVED GROWTH RATE PER CAPITA GROWTH PER CAPITA INCOME PER CAPITA INCOME LEVEL PER CAPITA INCOME LEVELS POINT ESTIMATE POINT ESTIMATES POLICY RESEARCH POSITIVE CORRELATION POSITIVE GROWTH POVERTY POVERTY GAP POVERTY HEADCOUNT POVERTY IMPACT POVERTY LINE POVERTY MEASURE POVERTY RATE POVERTY REDUCTION PRO-POOR REGRESSION TECHNIQUES RELATIVE INCOMES SENSITIVITY ANALYSIS SIGNIFICANT ATTENTION SIGNIFICANT CORRELATION SQUARE POVERTY GAP SQUARED POVERTY GAP STRUCTURAL BREAK TRADE LIBERALIZATION The author analyzes the stability of the empirical relationship between growth and changes in inequality over time. He concludes that while during the 1970s and 1980s the growth process was not accompanied by increases in inequality, during the 1990s a positive and significant correlation appears in the data. For this decade, he estimates that a 1 percent growth rate would be associated with an increase in the gini coefficient of between .3 to .5 percent. This positive correlation is hidden when one estimates the model without allowing for changes in the relationship over the different decades. The finding is robust to a number of departures from the basic specification including: (1) the use of alternative specifications to isolate decadal shifts; (2) the use of robust estimation techniques that address the potential influence of outliers; (3) restricting the sample to a balanced panel for the 1980s and 1990s to control for changes in the composition of the sample related to the unbalanced nature of the panel; and (4) considering the possibility of fixed effects in the data. The author also explores the impact of this structural change in the rate of poverty reduction and concludes that it is far from negligible. 2012-06-19T18:57:53Z 2012-06-19T18:57:53Z 2006-06 http://documents.worldbank.org/curated/en/2006/06/6822659/growth-less-pro-poor-1990s http://hdl.handle.net/10986/8460 English Policy Research Working Paper; No. 3931 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC 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
topic	ABSOLUTE VALUE ANNUAL GROWTH ANNUAL GROWTH RATE ANNUAL RATE COUNTRY EFFECTS DATA SET DECOMPOSABLE POVERTY MEASURES DENSITY FUNCTION ECONOMIC GROWTH ECONOMIC REVIEW ECONOMICS ECONOMICS LETTERS EMPIRICAL LITERATURE EMPIRICAL RELATIONSHIP EMPIRICAL RESULTS ERROR TERM ESTIMATION TECHNIQUES EXPLANATORY VARIABLE FIXED EFFECTS FIXED EFFECTS ESTIMATOR GINI COEFFICIENT GROWTH GROWTH DATA GROWTH PRO-POOR GROWTH PROCESS GROWTH RATE GROWTH RATES GROWTH-INEQUALITY RELATIONSHIP HEADCOUNT POVERTY HOUSEHOLD INCOME IMPACT OF INEQUALITY INCOME INEQUALITY INEQUALITY DATA INEQUALITY RELATIONSHIP INEQUALITY WILL LOG GINI LOW INCOME MEASURING INCOME INEQUALITY 0 HYPOTHESIS OBSERVED GROWTH OBSERVED GROWTH RATE PER CAPITA GROWTH PER CAPITA INCOME PER CAPITA INCOME LEVEL PER CAPITA INCOME LEVELS POINT ESTIMATE POINT ESTIMATES POLICY RESEARCH POSITIVE CORRELATION POSITIVE GROWTH POVERTY POVERTY GAP POVERTY HEADCOUNT POVERTY IMPACT POVERTY LINE POVERTY MEASURE POVERTY RATE POVERTY REDUCTION PRO-POOR REGRESSION TECHNIQUES RELATIVE INCOMES SENSITIVITY ANALYSIS SIGNIFICANT ATTENTION SIGNIFICANT CORRELATION SQUARE POVERTY GAP SQUARED POVERTY GAP STRUCTURAL BREAK TRADE LIBERALIZATION
spellingShingle	ABSOLUTE VALUE ANNUAL GROWTH ANNUAL GROWTH RATE ANNUAL RATE COUNTRY EFFECTS DATA SET DECOMPOSABLE POVERTY MEASURES DENSITY FUNCTION ECONOMIC GROWTH ECONOMIC REVIEW ECONOMICS ECONOMICS LETTERS EMPIRICAL LITERATURE EMPIRICAL RELATIONSHIP EMPIRICAL RESULTS ERROR TERM ESTIMATION TECHNIQUES EXPLANATORY VARIABLE FIXED EFFECTS FIXED EFFECTS ESTIMATOR GINI COEFFICIENT GROWTH GROWTH DATA GROWTH PRO-POOR GROWTH PROCESS GROWTH RATE GROWTH RATES GROWTH-INEQUALITY RELATIONSHIP HEADCOUNT POVERTY HOUSEHOLD INCOME IMPACT OF INEQUALITY INCOME INEQUALITY INEQUALITY DATA INEQUALITY RELATIONSHIP INEQUALITY WILL LOG GINI LOW INCOME MEASURING INCOME INEQUALITY 0 HYPOTHESIS OBSERVED GROWTH OBSERVED GROWTH RATE PER CAPITA GROWTH PER CAPITA INCOME PER CAPITA INCOME LEVEL PER CAPITA INCOME LEVELS POINT ESTIMATE POINT ESTIMATES POLICY RESEARCH POSITIVE CORRELATION POSITIVE GROWTH POVERTY POVERTY GAP POVERTY HEADCOUNT POVERTY IMPACT POVERTY LINE POVERTY MEASURE POVERTY RATE POVERTY REDUCTION PRO-POOR REGRESSION TECHNIQUES RELATIVE INCOMES SENSITIVITY ANALYSIS SIGNIFICANT ATTENTION SIGNIFICANT CORRELATION SQUARE POVERTY GAP SQUARED POVERTY GAP STRUCTURAL BREAK TRADE LIBERALIZATION Lopez, Humberto Did Growth Become Less Pro-Poor in the 1990s?
relation	Policy Research Working Paper; No. 3931
description	The author analyzes the stability of the empirical relationship between growth and changes in inequality over time. He concludes that while during the 1970s and 1980s the growth process was not accompanied by increases in inequality, during the 1990s a positive and significant correlation appears in the data. For this decade, he estimates that a 1 percent growth rate would be associated with an increase in the gini coefficient of between .3 to .5 percent. This positive correlation is hidden when one estimates the model without allowing for changes in the relationship over the different decades. The finding is robust to a number of departures from the basic specification including: (1) the use of alternative specifications to isolate decadal shifts; (2) the use of robust estimation techniques that address the potential influence of outliers; (3) restricting the sample to a balanced panel for the 1980s and 1990s to control for changes in the composition of the sample related to the unbalanced nature of the panel; and (4) considering the possibility of fixed effects in the data. The author also explores the impact of this structural change in the rate of poverty reduction and concludes that it is far from negligible.
format	Publications & Research :: Policy Research Working Paper
author	Lopez, Humberto
author_facet	Lopez, Humberto
author_sort	Lopez, Humberto
title	Did Growth Become Less Pro-Poor in the 1990s?
title_short	Did Growth Become Less Pro-Poor in the 1990s?
title_full	Did Growth Become Less Pro-Poor in the 1990s?
title_fullStr	Did Growth Become Less Pro-Poor in the 1990s?
title_full_unstemmed	Did Growth Become Less Pro-Poor in the 1990s?
title_sort	did growth become less pro-poor in the 1990s?
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2006/06/6822659/growth-less-pro-poor-1990s http://hdl.handle.net/10986/8460
_version_	1764406056654471168

Did Growth Become Less Pro-Poor in the 1990s?

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