IDEAS home Printed from https://ideas.repec.org/a/eaa/eerese/v18y2018i2_2.html
   My bibliography  Save this article

Sectoral Composition Of Growth And Poverty Reduction In Peru: A Regional Approach (2001-2016)

Author

Listed:
  • Victor GAMARRA ECHENIQUE

Abstract

Using GDP data disaggregated by region and sector, this paper examines the impact of the sectoral composition of growth on poverty reduction in Peru during the period 2001-2016, finding a considerable variation in the poverty-reducing effectiveness of growth across sectors, across space, and over time. The regressions appoint that growth in services sector poverty reducing than growth in either agriculture, mining or industry. Also, initial conditions related to human development affected the dynamics of poverty reduction. These results support the hypothesis that the sectoral structure of economic growth affects poverty independently from overall economic growth.

Suggested Citation

  • Victor GAMARRA ECHENIQUE, 2018. "Sectoral Composition Of Growth And Poverty Reduction In Peru: A Regional Approach (2001-2016)," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 18(2), pages 23-42.
  • Handle: RePEc:eaa:eerese:v:18:y2018:i:2_2
    as

    Download full text from publisher

    File URL: http://www.usc.es/~economet/reviews/eers1822.pdf
    Download Restriction: No
    ---><---

    References listed on IDEAS

    as
    1. Gustavo Yamada & Juan Francisco Castro, 2010. "La economía peruana en la última década: mejor desempeño y mayor resiliencia a las crisis," Working Papers 10-02, Centro de Investigación, Universidad del Pacífico.
    2. Alberto Alesina & Dani Rodrik, 1994. "Distributive Politics and Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(2), pages 465-490.
    3. Escobal, Javier & Ponce, Carmen, 2012. "Polarización y segregación en la distribución del ingreso en el Perú: trayectorias desiguales," Working Papers 130949, Group for the Analysis of Development (GRADE).
    4. Gustavo Yamada & Juan Francisco Castro, 2007. "Poverty, inequality, and social policies in Peru: As poor as it gets," Working Papers 07-06, Centro de Investigación, Universidad del Pacífico.
    5. Ravallion, Martin & Chen, Shaohua, 1997. "What Can New Survey Data Tell Us about Recent Changes in Distribution and Poverty?," The World Bank Economic Review, World Bank, vol. 11(2), pages 357-382, May.
    6. Hongyi Li & Heng‐fu Zou, 1998. "Income Inequality is not Harmful for Growth: Theory and Evidence," Review of Development Economics, Wiley Blackwell, vol. 2(3), pages 318-334, October.
    7. Yamada, Gustavo & Castro, Juan & Bacigalupo, José, 2012. "Desigualdad monetaria en un contexto de rápido crecimiento económico: El caso reciente del Perú," Revista Estudios Económicos, Banco Central de Reserva del Perú, issue 24, pages 65-77.
    8. Dollar, David & Kraay, Aart, 2002. "Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
    9. Ravallion, Martin, 1997. "Can high-inequality developing countries escape absolute poverty?," Economics Letters, Elsevier, vol. 56(1), pages 51-57, September.
    10. Oded Galor & Omer Moav, 2004. "From Physical to Human Capital Accumulation: Inequality and the Process of Development," Review of Economic Studies, Oxford University Press, vol. 71(4), pages 1001-1026.
    11. Alesina, Alberto & Perotti, Roberto, 1996. "Income distribution, political instability, and investment," European Economic Review, Elsevier, vol. 40(6), pages 1203-1228, June.
    12. Robert J. Barro, 1998. "Determinants of Economic Growth: A Cross-Country Empirical Study," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522543, December.
    13. Yamada Gustavo & Ricardo Montero, 2008. "Desempleo, pobreza y estrategias de protección social: Perú 1998-2005," Working Papers 08-03, Centro de Investigación, Universidad del Pacífico.
    14. Era Dabla-Norris & Kalpana Kochhar & Nujin Suphaphiphat & Franto Ricka & Evridiki Tsounta, 2015. "Causes and Consequences of Income Inequality; A Global Perspective," IMF Staff Discussion Notes 15/13, International Monetary Fund.
    15. Pernia, Ernesto & Kakwani, Nanak, 2000. "What is Pro-poor Growth?," MPRA Paper 104987, University Library of Munich, Germany.
    16. repec:dau:papers:123456789/10091 is not listed on IDEAS
    17. Peter Gottschalk, 1997. "Inequality, Income Growth, and Mobility: The Basic Facts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 21-40, Spring.
    18. J. Humberto Lopez, 2009. "Pro-Growth, Pro-Poor: Is There a Trade-off?," Chapters, in: Robert J. Brent (ed.), Handbook of Research on Cost–Benefit Analysis, chapter 18, Edward Elgar Publishing.
    19. Escobal, Javier & Saavedra, Jaime & Torero, Máximo, 1999. "Los activos de los pobres en el Perú," El Trimestre Económico, Fondo de Cultura Económica, vol. 0(263), pages 619-659, Julio-sep.
    20. Gaurav Datt & Martin Ravallion, 1998. "Farm productivity and rural poverty in India," Journal of Development Studies, Taylor & Francis Journals, vol. 34(4), pages 62-85.
    21. Robert J. Barro, 1999. "Inequality, Growth, and Investment," NBER Working Papers 7038, National Bureau of Economic Research, Inc.
    22. Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," The World Bank Economic Review, World Bank, vol. 10(1), pages 1-25, January.
    23. Cecilia Garcia-Penalosa & Eve Caroli & Philippe Aghion, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1615-1660, December.
    24. Mario D. TELLO, 2015. "Poverty, Growth, Structural Change and Social Inclusion Programs: A Regional Analysis of Peru," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 15(2), pages 59-74.
    25. Mr. Garbis Iradian, 2005. "Inequality, Poverty, and Growth: Cross-Country Evidence," IMF Working Papers 2005/028, International Monetary Fund.
    26. Oded Galor (ed.), 2009. "Inequality and Economic Development: The Modern Perspective," Books, Edward Elgar Publishing, number 12993.
    27. Escobal, Javier & Armas, Carmen, 2015. "Estructura agraria y dinámica de pobreza rural en el Perú," Documentos de Investigación dt79, Grupo de Análisis para el Desarrollo (GRADE).
    28. Montalvo, Jose G. & Ravallion, Martin, 2010. "The pattern of growth and poverty reduction in China," Journal of Comparative Economics, Elsevier, vol. 38(1), pages 2-16, March.
    29. Javier Herrera & Angelo Cozzubo, 2016. "La Vulnerabilidad de los hogares a la pobreza en el Perú, 2004-2014," Working Papers DT/2016/08, DIAL (Développement, Institutions et Mondialisation).
    30. Loayza, Norman & Mier y Teran, Alfredo & Rigolini, Jamele, 2013. "Poverty, Inequality, and the Local Natural Resource Curse," IZA Discussion Papers 7226, Institute of Labor Economics (IZA).
    31. Anand, Sudhir & Kanbur, S. M. R., 1993. "The Kuznets process and the inequality--development relationship," Journal of Development Economics, Elsevier, vol. 40(1), pages 25-52, February.
    32. Martin Ravallion, 2003. "Measuring Aggregate Welfare in Developing Countries: How Well Do National Accounts and Surveys Agree?," The Review of Economics and Statistics, MIT Press, vol. 85(3), pages 645-652, August.
    33. Ms. Era Dabla-Norris & Ms. Kalpana Kochhar & Mrs. Nujin Suphaphiphat & Mr. Franto Ricka & Ms. Evridiki Tsounta, 2015. "Causes and Consequences of Income Inequality: A Global Perspective," IMF Staff Discussion Notes 2015/013, International Monetary Fund.
    34. Li, Hongyi & Zou, Heng-fu, 1998. "Income Inequality Is Not Harmful for Growth: Theory and Evidence," Review of Development Economics, Wiley Blackwell, vol. 2(3), pages 318-334, October.
    35. Kristin J. Forbes, 2000. "A Reassessment of the Relationship between Inequality and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 869-887, September.
    36. Ferreira, Francisco H.G. & Leite, Phillippe G. & Ravallion, Martin, 2010. "Poverty reduction without economic growth?: Explaining Brazil's poverty dynamics, 1985-2004," Journal of Development Economics, Elsevier, vol. 93(1), pages 20-36, September.
    37. Alain Janvry & Ravi Kanbur (ed.), 2006. "Poverty, Inequality and Development," Economic Studies in Inequality, Social Exclusion, and Well-Being, Springer, number 978-0-387-29748-4, Fall.
    38. Escobal, J. & Ponce, C., 2008. "Dinámicas Provinciales de Pobreza en el Perú 1993 - 2005," Working papers 011, Rimisp Latin American Center for Rural Development.
    39. Kraay, Aart, 2006. "When is growth pro-poor? Evidence from a panel of countries," Journal of Development Economics, Elsevier, vol. 80(1), pages 198-227, June.
    40. Ravallion, Martin & Datt, Gaurav, 2002. "Why has economic growth been more pro-poor in some states of India than others?," Journal of Development Economics, Elsevier, vol. 68(2), pages 381-400, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. 40. Lists of articles on economic development of journal RSES, 2001-2020
      by MCG Blogs de Economía in Euro-American Association: World Development on 2020-02-25 20:32:00

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ravallion, Martin, 2001. "Growth, Inequality and Poverty: Looking Beyond Averages," World Development, Elsevier, vol. 29(11), pages 1803-1815, November.
    2. Lin Shu-Chin & Huang Ho-Chuan & Kim Dong-Hyeon & Yeh Chih-Chuan, 2009. "Nonlinearity between Inequality and Growth," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 13(2), pages 1-20, May.
    3. Jakub Bartak & Łukasz Jabłoński, 2020. "Inequality and growth: What comes from the different inequality measures?," Bulletin of Economic Research, Wiley Blackwell, vol. 72(2), pages 185-212, April.
    4. Martin Ravallion, 2013. "The Idea of Antipoverty Policy," NBER Working Papers 19210, National Bureau of Economic Research, Inc.
    5. Ansgar Belke & Andreas Wernet, 2015. "Poverty Reduction through Growth and Redistribution Policies—a Panel Analysis for 59 Developing Countries," Review of Development Economics, Wiley Blackwell, vol. 19(1), pages 143-162, February.
    6. Gustavo A. Marrero & Luis Servén, 2022. "Growth, inequality and poverty: a robust relationship?," Empirical Economics, Springer, vol. 63(2), pages 725-791, August.
    7. Gravier-Rymaszewska, Joanna & Tyrowicz, Joanna & Kochanowicz, Jacek, 2010. "Intra-provincial inequalities and economic growth in China," Economic Systems, Elsevier, vol. 34(3), pages 237-258, September.
    8. Mcknight, Abigail, 2019. "Understanding the relationship between poverty, inequality and growth: a review of existing evidence," LSE Research Online Documents on Economics 103458, London School of Economics and Political Science, LSE Library.
    9. Abigail McKnight, 2019. "Understanding the relationship between poverty, inequality and growth: a review of existing evidence," CASE Papers /216, Centre for Analysis of Social Exclusion, LSE.
    10. Rui Benfica & Heath Henderson, 2021. "The Effect of the Sectoral Composition of Economic Growth on Rural and Urban Poverty," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(1), pages 248-284, March.
    11. Seher Gülşah Topuz, 2022. "The Relationship Between Income Inequality and Economic Growth: Are Transmission Channels Effective?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 162(3), pages 1177-1231, August.
    12. Shinhye Chang & Rangan Gupta & Stephen M. Miller, 2018. "Causality Between Per Capita Real GDP and Income Inequality in the U.S.: Evidence from a Wavelet Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 135(1), pages 269-289, January.
    13. Dollar, David & Kraay, Aart, 2002. "Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
    14. Marrero, Gustavo A. & Rodríguez, Juan G., 2013. "Inequality of opportunity and growth," Journal of Development Economics, Elsevier, vol. 104(C), pages 107-122.
    15. Gutiérrez-Romero, Roxana, 2021. "How does inequality affect long-run growth? Cross-industry, cross-country evidence," Economic Modelling, Elsevier, vol. 95(C), pages 274-297.
    16. Ms. Valerie Cerra & Mr. Ruy Lama & Norman Loayza, 2021. "Links Between Growth, Inequality, and Poverty: A Survey," IMF Working Papers 2021/068, International Monetary Fund.
    17. Grabiella Berloffa & Maria Luigia Segnana, 2004. "Trade, inequality and pro-poor growth: Two perspectives, one message?," Department of Economics Working Papers 0408, Department of Economics, University of Trento, Italia.
    18. Robert J. Barro, 1999. "Inequality, Growth, and Investment," NBER Working Papers 7038, National Bureau of Economic Research, Inc.
    19. Blotevogel, Robert & Imamoglu, Eslem & Moriyama, Kenji & Sarr, Babacar, 2022. "Income inequality measures and economic growth channels," Journal of Macroeconomics, Elsevier, vol. 72(C).
    20. Andrew Berg & Jonathan D. Ostry & Charalambos G. Tsangarides & Yorbol Yakhshilikov, 2018. "Redistribution, inequality, and growth: new evidence," Journal of Economic Growth, Springer, vol. 23(3), pages 259-305, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eaa:eerese:v:18:y2018:i:2_2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: M. Carmen Guisan (email available below). General contact details of provider: http://www.usc.es/economet/eaa.htm .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.