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Poverty Reduction Through Economic Growth: Some Issues

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  • ANDREW MCKAY

    (CREDIT and Department of Economics, University of Nottingham, UK)

Abstract

In broad terms, reduction in poverty can come about through redistributions among households at an existing level of average income, or through growth in average incomes, or through a combination of the two. However, both theoretical and empirical considerations suggest that growth of average household incomes is likely to be necessary to achieve sustained long-term poverty reductions. But the pattern of this growth is important; clearly a growth pattern where the benefits accrue disproportionately to the richest in a society will have less poverty impact than one where the benefits are equally distributed or biased towards the poor. This is likely to be particularly important in countries where growth is likely to be slow. This paper reflects on the relationship between growth in household incomes, inequality and poverty. © 1997 by John Wiley & Sons, Ltd.

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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 9 (1997)
Issue (Month): 4 ()
Pages: 665-673

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Handle: RePEc:wly:jintdv:v:9:y:1997:i:4:p:665-673

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Web page: http://www3.interscience.wiley.com/journal/5102/home

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  1. Galor, Oded & Zeira, Joseph, 1988. "Income Distribution and Macroeconomics," MPRA Paper 51644, University Library of Munich, Germany, revised 01 Sep 1989.
  2. Aghion, Philippe & Bolton, Patrick, 1992. "Distribution and growth in models of imperfect capital markets," European Economic Review, Elsevier, Elsevier, vol. 36(2-3), pages 603-611, April.
  3. Lipton, Michael & Ravallion, Martin, 1995. "Poverty and policy," Handbook of Development Economics, Elsevier, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 41, pages 2551-2657 Elsevier.
  4. Ravallion, Martin & Huppi, Monika, 1991. "Measuring Changes in Poverty: A Methodological Case Study of Indonesia during an Adjustment Period," World Bank Economic Review, World Bank Group, World Bank Group, vol. 5(1), pages 57-82, January.
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Cited by:
  1. Epo, Boniface Ngah & Baye, Francis Menjo, 2007. "Poverty Reduction in Cameroon, 1996-2001: The Role of Growth and Income Redistribution," MPRA Paper 10124, University Library of Munich, Germany.
  2. Boniface Ngah Epo & Francis Menjo Baye & Nadine Teme Angele Manga, 2011. "Spatial and Inter-temporal Sources of Poverty, Inequality and Gender Disparities in Cameroon: a Regression-Based Decomposition Analysis," Working Papers PMMA, PEP-PMMA 2011-15, PEP-PMMA.
  3. Sasa Obradovic & Boris Siljkovic, 2012. "Social and Economic Measures for Reduction of Unemployment in Serbia and Their Effects on Poverty and Level of Development," Book Chapters, Institute of Economic Sciences.

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