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When unstable, growth is less pro poor

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Author Info
Patrick GUILLAUMONT () (Centre d'Etudes et de Recherches sur le Développement International)
Catherine KORACHAIS ()

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Abstract

Macroeconomic instability has been increasingly considered as a factor lowering average income growth and by this way is a factor slowing down poverty reduction. But it can also result in slower poverty reduction for a given average rate of growth, due to poverty traps, often examined at the microeconomic level. Testing a model of poverty change on a panel of data for 70 countries from 1981 to 1999, we do find that income instability results in a lower poverty reduction for a given growth. It reflects a distributional effect not fully captured by a change in the Gini coefficient.

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Publisher Info
Paper provided by CERDI in its series Working Papers with number 200827.

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Length: 31
Date of creation: 2008
Date of revision:
Handle: RePEc:cdi:wpaper:1051

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Related research
Keywords: Inequality; Poverty; economic growth; growth elasticity of poverty; income instability; poverty trap;

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This page was last updated on 2009-11-25.

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