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A structural analysis of growth and poverty in the short-term

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  • Paolo Verme

    (University of Torino and Bocconi University, Italy)

Abstract

“Growth is good for the poor” is a ubiquitous statement and one generally backed by theory, research and history. In the long-run, growth reduces poverty. Yet, growth in output - per se - is neither a necessary nor a sufficient condition for poverty reduction in the short-term. The paper uses a number of parametric and non-parametric methodologies to assess the relation between growth and poverty in Kazakhstan, a country that experienced rapid growth and poverty reduction in the short-term. Combining macro and micro regional data, we find a very small trickle down effect of output growth on household incomes and no evidence that output growth is correlated with poverty reduction. We find instead that pro-poor growth in household income explains well poverty reduction.

Suggested Citation

  • Paolo Verme, 2010. "A structural analysis of growth and poverty in the short-term," Journal of Developing Areas, Tennessee State University, College of Business, vol. 43(2), pages 19-39, January-M.
    • Handle: RePEc:jda:journl:vol.43:year:2010:issue2:pp:19-39
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    File URL: http://muse.jhu.edu/journals/journal_of_developing_areas/v043/43.2.verme.html
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    Cited by:

    1. Bergh, Andreas & Nilsson, Therese, 2014. "Is Globalization Reducing Absolute Poverty?," World Development, Elsevier, vol. 62(C), pages 42-61.
    2. Brück, Tilman & Esenaliev, Damir & Kroeger, Antje & Kudebayeva, Alma & Mirkasimov, Bakhrom & Steiner, Susan, 2014. "Household survey data for research on well-being and behavior in Central Asia," Journal of Comparative Economics, Elsevier, vol. 42(3), pages 819-835.
    3. 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.
    4. VERME Paolo, 2009. "Happiness, Deprivation and the Alter Ego," IRISS Working Paper Series 2009-18, IRISS at CEPS/INSTEAD.
    5. Bergh, Andreas & Nilsson, Therese, 2011. "Globalization and Absolute Poverty – A Panel Data Study," Working Paper Series 862, Research Institute of Industrial Economics.

    More about this item

    Keywords

    Central Asia; Kazakhstan; Growth; Poverty; Inequality;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies

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