IDEAS home Printed from https://ideas.repec.org/a/sae/soueco/v9y2008i1p51-68.html
   My bibliography  Save this article

Pro-Poor Growth in Pakistan

Author

Listed:
  • Muhammad Omer

    (Muhammad Omer is a Research Analyst at the Economics Analysis Department, State Bank of Pakistan, I.I. Chundrigar Road, Karachi-74000. Email: muhammad.omer@sbp.org.pk)

  • Sarah Jafri

    (Sarah Jafri is an Economic Analyst at Arif Habib Investments Management Ltd, 2/1, R.Y. 16, Old Queens Road, Karachi-74400. Email: sarah.jafri@gmail.com)

Abstract

This study assesses the impact of economic growth on absolute poverty in Pakistan over the last four decades. The article attempts to answer the relatively ignored basic question: is economic growth in Pakistan pro-poor? In addition, an attempt has been made to evaluate the distribution of income within poor, a step necessary to determine the sensitivity of different income groups, below poverty line, to the economic growth. These assessments are conducted through Growth Incidence Curves—a superior poverty measure—and calculation of the Rate of Pro-Poor Growth (RPPG) and the Ordinary Rate of Growth (ORG). This study finds that economic growth in Pakistan is not intrinsically pro-poor. Although it was pro-poor in the seventies and is also the same in the current decade, and strongly pro-poor in the eighties, a positive growth in the nineties was, however, anti-poor. The analysis shows that the first decile is most sensitive to economic growth and most vulnerable to economic shocks.

Suggested Citation

  • Muhammad Omer & Sarah Jafri, 2008. "Pro-Poor Growth in Pakistan," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 9(1), pages 51-68, June.
    • Handle: RePEc:sae:soueco:v:9:y:2008:i:1:p:51-68
    DOI: 10.1177/139156140700900102
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/139156140700900102
    Download Restriction: no
    File URL: https://libkey.io/10.1177/139156140700900102?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Pernia, Ernesto & Kakwani, Nanak, 2000. "What is Pro-poor Growth?," MPRA Paper 104987, University Library of Munich, Germany.
    2. World Bank, 2002. "Poverty Assessment : Poverty in Pakistan - Vulnerabilities, Social Caps, and Rural Dynamics," World Bank Publications - Reports 15335, The World Bank Group.
    3. Stephan Klasen, 2003. "In Search of The Holy Grail: How to Achieve Pro-Poor Growth ?," Ibero America Institute for Econ. Research (IAI) Discussion Papers 096, Ibero-America Institute for Economic Research.
    4. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    5. Mr. Mahmood Hasan Khan, 2002. "When is Economic Growth Pro-Poor? Experiences in Malaysia and Pakistan," IMF Working Papers 2002/085, International Monetary Fund.
    6. World Bank, 2002. "Pakistan Development Policy Review : A New Dawn?," World Bank Publications - Reports 15425, The World Bank Group.
    7. Hafiz A. Pasha & T. Palanivel, 2003. "Pro-poor Growth and Policies: The Asian Experience," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(4), pages 313-348.
    8. Rashid Amjad & A.R. Kemal, 1997. "Macroeconomic Policies and their Impact on Poverty Alleviation in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 36(1), pages 39-68.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jamal, Haroon, 2014. "Growth and Income Inequality Effects on Poverty: The Case of Pakistan (1988-2011)," MPRA Paper 59897, University Library of Munich, Germany.
    2. Ikram Ali & Armando Barrientos & Abdul Saboor & Atta Ullah Khan & Jazib Nelson, 2017. "A Decade of Sub-national Pro-poor Growth in Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 133(1), pages 47-65, August.
    3. Aadil Hameed Shah & Atta Ullah Khan & Liurong Pan & Asad Amin & Abbas Ali Chandio, 2022. "Reflections of Pro-Poor Growth across Agro-Climatic Zones for Farming and Non-Farming Communities: Evidence from Punjab, Pakistan," IJERPH, MDPI, vol. 19(9), pages 1-16, May.
    4. Ademola Obafemi YOUNG, 2019. "Why Has Growth Not Trickled Down to the Poor? A Study of Nigeria," Review of European Studies, Canadian Center of Science and Education, vol. 11(1), pages 156-156, December.
    5. Zaman, Khalid & Khilji, Bashir Ahmad, 2013. "The relationship between growth–inequality–poverty triangle and pro-poor growth policies in Pakistan: The twin disappointments," Economic Modelling, Elsevier, vol. 30(C), pages 375-393.

    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. Zaman, Khalid & Khilji, Bashir Ahmad, 2013. "The relationship between growth–inequality–poverty triangle and pro-poor growth policies in Pakistan: The twin disappointments," Economic Modelling, Elsevier, vol. 30(C), pages 375-393.
    2. Zaman, Khalid & Khan, Muhammad Mushtaq & Ahmad, Mehboob, 2012. "The relationship between foreign direct investment and pro-poor growth policies in Pakistan: The new interface," Economic Modelling, Elsevier, vol. 29(4), pages 1220-1227.
    3. Khalid Zaman & Bashir Khilji, 2014. "A note on pro-poor social expenditures," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(4), pages 2121-2154, July.
    4. Nanak Kakwani & Hyun H. Son, 2006. "Pro-Poor Growth: The Asian Experience," WIDER Working Paper Series RP2006-56, World Institute for Development Economic Research (UNU-WIDER).
    5. Omer, Muhammad & Jafri, Sarah, 2008. "Pro Poor Growth in Pakistan: An Assessment of the 1970s, 1980s, 1990s and 2000s," MPRA Paper 36738, University Library of Munich, Germany.
    6. François Joseph Cabral, 2009. "La stratégie de croissance accélérée du Sénégal est t-elle pro-pauvre," Cahiers de recherche 09-05, Departement d'économique de l'École de gestion à l'Université de Sherbrooke, revised 01 Jun 2009.
    7. Klasen, Stephan & Reimers, Malte, 2017. "Looking at Pro-Poor Growth from an Agricultural Perspective," World Development, Elsevier, vol. 90(C), pages 147-168.
    8. Higgins, Sean & Lustig, Nora, 2016. "Can a poverty-reducing and progressive tax and transfer system hurt the poor?," Journal of Development Economics, Elsevier, vol. 122(C), pages 63-75.
    9. Klump, R. & Prüfer, P., 2006. "Prioritizing Policies for Pro-Poor Growth : Applying Bayesian Model Averaging to Vietnam," Other publications TiSEM dc14add6-f581-4eea-92dd-3, Tilburg University, School of Economics and Management.
    10. Peter Warr, 2005. "Pro‐poor Growth," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 19(2), pages 1-17, November.
    11. Temel Taskin, 2014. "GDP Growth in Turkey : Inclusive or Not?," Central Bank Review, Research and Monetary Policy Department, Central Bank of the Republic of Turkey, vol. 14(2), pages 31-64.
    12. Jean-Yves Duclos & Paul Makdissi & Abdelkrim Araar, 2009. "Pro-Poor Tax reforms, with an Application to Mexico," Working Papers 0907E, University of Ottawa, Department of Economics.
    13. ALi Abdel Gadir Ali, "undated". "Poverty in the Arab Region: A Selective Review," API-Working Paper Series 0402, Arab Planning Institute - Kuwait, Information Center.
    14. Najam, Zaira, 2020. "The Sensitivity of Poverty Trends to Dimensionality and Distribution Sensitivity in Poverty Measures - District Level Analysis for Pakistan," MPRA Paper 102383, University Library of Munich, Germany.
    15. S. M. Naseem, 2012. "A Review Of Studies On Poverty In Pakistan: Origin, Evolution, Thematic Content And Future Directions," PIDE Books, Pakistan Institute of Development Economics, number 2012:1 edited by Rashid Amjad, December.
    16. Michael Grimm & Isabel Günther, 2005. "Inflation Inequality and the Measurement of Pro-Poor Growth," Working Papers DT/2005/08, DIAL (Développement, Institutions et Mondialisation).
    17. Klasen, Stephan, 2008. "Economic Growth and Poverty Reduction: Measurement Issues using Income and Non-Income Indicators," World Development, Elsevier, vol. 36(3), pages 420-445, March.
    18. Bibi, Sami & Duclos, Jean-Yves & Verdier-Chouchane, Audrey, 2012. "Assessing absolute and relative pro-poor growth, with an application to selected African countries," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 6, pages 1-43.
    19. Muhammad Khan & Muhammad Khan & Khalid Zaman & Umar Hassan & Sobia Umar, 2014. "Global estimates of growth–inequality–poverty (GIP) triangle: evidence from World Bank’s classification countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(5), pages 2631-2646, September.
    20. Klasen, Stephan & Harttgen, Kenneth & Grosse, Melanie, 2005. "Measuring Pro-Poor Growth with Non-Income Indicators," Proceedings of the German Development Economics Conference, Kiel 2005 22, Verein für Socialpolitik, Research Committee Development Economics.

    More about this item

    Keywords

    JEL: D3; JEL: I32; JEL: I38; JEL: O4; JEL: O5; Growth Incidence Curve; Pakistan; Poverty; Pro-Poor Growth; South Asia;
    All these keywords.

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

    Statistics

    Access and download statistics

    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:sae:soueco:v:9:y:2008:i:1:p:51-68. 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: SAGE Publications (email available below). General contact details of provider: http://www.ips.lk/ .

    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.