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Economic Growth and Poverty Reduction: Measurement Issues using Income and Non-Income Indicators

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  • Klasen, Stephan

Abstract

Summary This paper first reviews the debate on the definition of pro-poor growth and argues that a relative definition has merits when defining the state of pro-poor growth, while an absolute definition is most suitable when analyzing the rate of pro-poor growth. The second contribution is to extend the pro-poor growth toolbox to non-income indicators. The analysis, applied to Bolivia, shows that this extension greatly improves our understanding of the distribution of change in non-income indicators, of the linkages between progress in income and non-income dimensions of poverty, and on the incidence of progress in non-income outcomes along the income distribution.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 36 (2008)
Issue (Month): 3 (March)
Pages: 420-445

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Handle: RePEc:eee:wdevel:v:36:y:2008:i:3:p:420-445

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  1. Dollar, David & Kraay, Aart, 2002. " Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
  2. Stephan Klasen, 2006. "Pro-Poor Growth and Gender Inequality," Ibero America Institute for Econ. Research (IAI) Discussion Papers 151, Ibero-America Institute for Economic Research.
  3. Ravallion, Martin, 2001. "Growth, Inequality and Poverty: Looking Beyond Averages," World Development, Elsevier, vol. 29(11), pages 1803-1815, November.
  4. 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.
  5. Stephen Knowles & Paula K. Lorgelly, 2002. "Are educational gender gaps a brake on economic development? Some cross-country empirical evidence," Oxford Economic Papers, Oxford University Press, vol. 54(1), pages 118-149, January.
  6. Abhijit V. Banerjee & Esther Duflo, 2000. "Inequality and Growth: What Can the Data Say?," NBER Working Papers 7793, National Bureau of Economic Research, Inc.
  7. Stephan Klasen & Mark Misselhorn, 2008. "Determinants of the Growth Semi-Elasticity of Poverty Reduction," Ibero America Institute for Econ. Research (IAI) Discussion Papers 176, Ibero-America Institute for Economic Research.
  8. Son, Hyun Hwa, 2004. "A note on pro-poor growth," Economics Letters, Elsevier, vol. 82(3), pages 307-314, March.
  9. Datt, Gaurav & Ravallion, Martin, 2002. "Is India's economic growth leaving the poor behind?," Policy Research Working Paper Series 2846, The World Bank.
  10. Stephan Klasen, 2008. "Poverty, undernutrition, and child mortality: Some inter-regional puzzles and their implicationsfor research and policy," Journal of Economic Inequality, Springer, vol. 6(1), pages 89-115, March.
  11. Stephan Klasen, 2004. "In Search of the Holy Grail: How to Achieve Pro-Poor Growth?," Macroeconomics 0401005, EconWPA.
  12. Ravallion, Martin & Shaohua Chen, 2004. "China's (uneven) progress against poverty," Policy Research Working Paper Series 3408, The World Bank.
  13. Basu, Kaushik & Foster, James E, 1998. "On Measuring Literacy," Economic Journal, Royal Economic Society, vol. 108(451), pages 1733-49, November.
  14. Melanie Grosse & Kenneth Harttgen & Stephan Klasen, 2005. "Measuring Pro-Poor Growth with Non-Income Indicators," Ibero America Institute for Econ. Research (IAI) Discussion Papers 132, Ibero-America Institute for Economic Research.
  15. Michael Grimm, 2007. "Removing the anonymity axiom in assessing pro-poor growth," Journal of Economic Inequality, Springer, vol. 5(2), pages 179-197, August.
  16. Klasen, Stephan & Günther, Isabel, 2007. "Measuring Chronic Non-Income Poverty," Proceedings of the German Development Economics Conference, Göttingen 2007 10, Verein für Socialpolitik, Research Committee Development Economics.
  17. Grosse, Melanie & Harttgen, Kenneth & Klasen, Stephan, 2006. "Measuring Pro-Poor Progress towards the Non-Income Millennium Development Goals," Working Paper Series RP2006/38, World Institute for Development Economic Research (UNU-WIDER).
  18. Martin Ravallion, 2005. "A poverty-inequality trade off?," Journal of Economic Inequality, Springer, vol. 3(2), pages 169-181, August.
  19. Klasen, Stephan, 2000. "Measuring Poverty and Deprivation in South Africa," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(1), pages 33-58, March.
  20. Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, vol. 57(2), pages 259-287.
  21. Stephan Klasen & Melanie Grosse & Rainer Thiele & Jann Lay & Julius Spatz & Manfred Wiebelt, 2004. "Operationalizing Pro-Poor Growth - Country Case Study: Bolivia," Ibero America Institute for Econ. Research (IAI) Discussion Papers 101, Ibero-America Institute for Economic Research.
  22. Jean-Yves Duclos, 2009. "What is “Pro-Poor”?," Social Choice and Welfare, Springer, vol. 32(1), pages 37-58, January.
  23. 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.
  24. Chun-Hung Lin, 2007. "Education Expansion, Educational Inequality, and Income Inequality: Evidence from Taiwan, 1976–2003," Social Indicators Research, Springer, vol. 80(3), pages 601-615, February.
  25. 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.
  26. Kakwani, N., 1993. "Performance in living standards : An international comparison," Journal of Development Economics, Elsevier, vol. 41(2), pages 307-336, August.
  27. Mattias Lundberg & Lyn Squire, 2003. "The simultaneous evolution of growth and inequality," Economic Journal, Royal Economic Society, vol. 113(487), pages 326-344, 04.
  28. Ravallion, Martin & Shaohua Chen, 2001. "Measuring pro-poor growth," Policy Research Working Paper Series 2666, The World Bank.
  29. Barro, Robert J, 2000. " Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
  30. Melanie Grosse & Stephan Klasen & Julius Spatz, 2005. "Creating National Poverty Profiles and Growth Incidence Curves with Incomplete Income or Consumption Expenditure Data: An Application to Bolivia," Ibero America Institute for Econ. Research (IAI) Discussion Papers 129, Ibero-America Institute for Economic Research.
  31. Kakwani, Nanak & Son, Hyun H., 2006. "Pro-Poor Growth: The Asian Experience," Working Paper Series RP2006/56, World Institute for Development Economic Research (UNU-WIDER).
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Citations

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Cited by:
  1. Grimm, M., 2009. "Inequality in human development : an empirical assessment of thirty-two countries," ISS Working Papers - General Series 18722, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
  2. Adriana Cardozo & Melanie Grosse, 2009. "Pro-Poor Growth Using Non-Income Indicators: An Empirical Illustration for Colombia," Ibero America Institute for Econ. Research (IAI) Discussion Papers 192, Ibero-America Institute for Economic Research.
  3. Tebaldi, Edinaldo & Mohan, Ramesh, 2008. "Poverty, Geography and Institutional Path Dependence," MPRA Paper 10201, University Library of Munich, Germany.
  4. Olavarrieta, Sergio & Villena, Mauricio G., 2014. "Innovation and business research in Latin America: An overview," Journal of Business Research, Elsevier, vol. 67(4), pages 489-497.
  5. Francesco Caracciolo & Fabio Santeramo, 2013. "Price Trends and Income Inequalities: Will Sub-Saharan Africa Reduce the Gap?," African Development Review, African Development Bank, vol. 25(1), pages 42-54.
  6. Anda Mariana David & Mohamed Ali Marouani, 2010. "Poverty reduction and growth interactions: what can be learned from the Syrian experience ?," Working Papers DT/2010/06, DIAL (Développement, Institutions et Mondialisation).
  7. Grosse, Melanie & Harttgen, Kenneth & Klasen, Stephan, 2008. "Measuring Pro-Poor Growth in Non-Income Dimensions," World Development, Elsevier, vol. 36(6), pages 1021-1047, June.
  8. S. Chandrasekhar & Abhiroop Mukhopadhyay, 2009. "Poverty in Indian cities during the reforms era," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 09-07, Indian Statistical Institute, New Delhi, India.
  9. Francisco Azpitarte, 2012. "Was Economic Growth in Australia Good for the Income-Poor? and for the Multidimensionally-Poor?," Working Papers 278, ECINEQ, Society for the Study of Economic Inequality.
  10. Abdelkrim ARAAR & Jean-Yves DUCLOS & Paul MAKDISSI, 2012. "Pro-poor indirect tax reforms, with an application to Mexico," Working Papers P56, FERDI.
  11. Francisco Azpitarte, 2014. "Was Pro-Poor Economic Growth in Australia for the Income-Poor? And for the Multidimensionally-Poor?," Social Indicators Research, Springer, vol. 117(3), pages 871-905, July.

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