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Growth and Poverty Reduction in Ethiopia: Evidence from Household Panel Surveys

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Author Info
Bigsten, Arne (Department of Economics, School of Economics and Commercial Law, Göteborg University)
Kebede, Bereket (Department of Economics, Addis Ababa University, and CSAE, Univ of Oxford)
Shimeles, Abebe (Department of Economics, School of Economics and Commercial Law, Göteborg University)
Taddesse , Mekonnen (Department of Economics, Addis Adaba Univ)

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Abstract

The paper investigates the poverty impact of growth in Ethiopia by analysing panel data covering the period 1994 to 1997, a period of economic recovery driven by good weather, peace, and much improved macro economic management. Unlike mostdeveloping countries, urban and rural poverty in Ethiopia are not significantly different from each other. The analysis of the structure of poverty shows asset ownership,education, type of crops planted, dependency ratios, and location to be important determinants. Decomposition of changes in poverty into the growth and redistribution components indicates that potential poverty-reduction due to the increase in real per capita income was to some extent counteracted by worsening income distribution. The implications of the results for a pro-poor policy are discussed.

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File URL: http://hdl.handle.net/2077/2799
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Publisher Info
Paper provided by Göteborg University, Department of Economics in its series Working Papers in Economics with number 65.

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Length: 30 pages
Date of creation: 16 Jan 2002
Date of revision:
Publication status: Published in World Development, 2003, pages 87-106.
Handle: RePEc:hhs:gunwpe:0065

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Postal: Department of Economics, School of Business, Economics and Law, Göteborg University Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Related research
Keywords: Growth; poverty; households; survey;

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Find related papers by JEL classification:
I30 - Health, Education, and Welfare - - Welfare and Poverty - - - General
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Bigsten , Arne & Levin, Jörgen, 2000. "Growth, Income Distribution, and Poverty: A Review," Working Papers in Economics 32, Göteborg University, Department of Economics. [Downloadable!]
    Other versions:
  2. Dollar, David & Kraay, Aart, 2001. "Growth is good for the poor," Policy Research Working Paper Series 2587, The World Bank. [Downloadable!]
    Other versions:
  3. Kakwani, N., 1990. "Poverty And Economic Growth: With Application To Cote D'Ivoire," Papers 63, World Bank - Living Standards Measurement.
  4. Kakwani, N., 1990. "Poverty And Economic Growth; With Application To Cote D'Ivoire," Papers 90-2, New South Wales - School of Economics.
  5. Ravallion, Martin & Chen, Shaohua, 1997. "What Can New Survey Data Tell Us about Recent Changes in Distribution and Poverty?," World Bank Economic Review, Oxford University Press, vol. 11(2), pages 357-82, May.
    Other versions:
  6. Ravallion, Martin & Bidani, Benu, 1994. "How Robust Is a Poverty Profile?," World Bank Economic Review, Oxford University Press, vol. 8(1), pages 75-102, January.
    Other versions:
  7. 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. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Arnstein Aassve & Abbi M. Kedir & Habtu Tadesse Woldegebriel, 2006. "State Dependence and Causal Feedback of Poverty and Fertility in Ethiopia," Discussion Papers in Economics 06/7, Department of Economics, University of Leicester. [Downloadable!]
  2. Geda, Alemayehu & Shimeles, Abebe & Zerfu, Daniel, 2006. "Finance and Poverty in Ethiopia: A Household Level Analysis," Working Papers RP2006/51, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  3. Christelle Swanepoel, 2005. "Poverty and Poverty Dynamics in Rural Ethiopia," Working Papers 03/2005, Stellenbosch University, Department of Economics. [Downloadable!]
  4. Kronlid, Karin, 2001. "Household Welfare and Education in Urban Ethiopia," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  5. Stephen Devereux & Kay Sharp, 2006. "Trends in poverty and destitution in Wollo, Ethiopia 1," The Journal of Development Studies, Taylor and Francis Journals, vol. 42(4), pages 592-610, May. [Downloadable!] (restricted)
  6. Dorothée BOCCANFUSO & Tambi Samuel KABORE, 2004. "Macroeconomic Growth, Sectoral Quality Of Growth And Poverty In Developing Countries: Measure And Application To Burkina Faso," Cahiers de recherche 04-07, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
  7. repec:ese:iserwp: is not listed on IDEAS
  8. Kalwij, Adriaan & Verschoor, Arjan, 2005. "A Decomposition of Poverty Trends across Regions: The Role of Variation in the Income and Inequality Elasticities of Poverty," Working Papers RP2005/36, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  9. Bandeira, Pablo & Sumpsi, Jose Maria, 2009. "Access to land and rural poverty in developing countries: theory and evidence from Guatemala," MPRA Paper 13365, University Library of Munich, Germany. [Downloadable!]
  10. 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. [Downloadable!]
  11. Catalina Amuedo-Dorantes, 2005. "Work Contracts and Earnings Inequality: The Case of Chile," The Journal of Development Studies, Taylor and Francis Journals, vol. 41(4), pages 589-616, May. [Downloadable!] (restricted)
  12. Bigsten, Arne & Shimeles, Abebe, 2004. "Dynamics of Poverty in Ethiopia," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  13. Kimhi, Ayal, 2009. "Entrepreneurship and Income Inequality in Southern Ethiopia," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
    Other versions:
  14. David Sahn & Stephen Younger, 2005. "Improvements in children’s health: Does inequality matter?," Journal of Economic Inequality, Springer, vol. 3(2), pages 125-143, August. [Downloadable!] (restricted)
  15. Rogg, Christian, 2006. "Asset Portfolios in Africa: Evidence from Rural Ethiopia," Working Papers RP2006/145, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  16. Lelli, Sara, 2004. "What Money Can't Buy: The Relevance of Income Redistribution for Functioning Levels," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  17. Arne Bigsten & Sven Tengstam, 2008. "Smallholder Income Diversification In Zambia: The Way Out Of Poverty?," International Development Collaborative Working Papers ZM-FSRP-WP-31, Department of Agricultural Economics, Michigan State University. [Downloadable!]
    Other versions:
  18. Heshmati, Almas, 2004. "Growth, Inequality and Poverty Relationships," IZA Discussion Papers 1338, Institute for the Study of Labor (IZA). [Downloadable!]
  19. Kalwij, A.S. & Verschoor, A., 2004. "How good is growth for the poor? : the role of the initial income distribution in regional diversity in poverty trends," Discussion Paper 115, Tilburg University, Center for Economic Research. [Downloadable!]
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