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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)

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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Bibliographic Info

Paper provided by University of Gothenburg, 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

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

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  1. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762, April.
  2. Ravallion, M., 1992. "Poverty Comparisons - A Guide to Concepts and Methods," Papers 88, World Bank - Living Standards Measurement.
  3. Villasenor, JoseA. & Arnold, Barry C., 1989. "Elliptical Lorenz curves," Journal of Econometrics, Elsevier, vol. 40(2), pages 327-338, February.
  4. 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.
  5. Shaohua Chen & Datt, Gaurav & Ravallion, Martin, 1993. "Is poverty increasing in the developing world?," Policy Research Working Paper Series 1146, The World Bank.
  6. Philippa Bevan & Sandra Fullerton Joireman, 1997. "The perils of measuring poverty: Identifying the 'poor' in rural Ethiopia," Oxford Development Studies, Taylor & Francis Journals, vol. 25(3), pages 315-343.
  7. Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Equivalence Scale Relativities and the Extent of Inequality and Poverty," Economic Journal, Royal Economic Society, vol. 102(414), pages 1067-82, September.
  8. Arne Bigsten & Jörgen Levin, 2010. "Growth, Income Distribution, and Poverty: A Review," Working Papers id:3296, eSocialSciences.
  9. Kakwani, N., 1990. "Poverty And Economic Growth: With Application To Cote D'Ivoire," Papers 63, World Bank - Living Standards Measurement.
  10. Dollar, David & Kraay, Aart, 2002. " Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
  11. Ravallion, Martin & Chen, Shaohua, 1997. "What Can New Survey Data Tell Us about Recent Changes in Distribution and Poverty?," World Bank Economic Review, World Bank Group, vol. 11(2), pages 357-82, May.
  12. Kakwani, N., 1990. "Poverty And Economic Growth; With Application To Cote D'Ivoire," Papers 90-2, New South Wales - School of Economics.
  13. Lipton, Michael & Ravallion, Martin, 1993. "Poverty and policy," Policy Research Working Paper Series 1130, The World Bank.
  14. Gary G. Moser & Toshihiro Ichida, 2001. "Economic Growth and Poverty Reduction in Sub-Saharan Africa," IMF Working Papers 01/112, International Monetary Fund.
  15. Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April.
  16. Ravallion, Martin & Bidani, Benu, 1993. "How robust is a poverty profile?," Policy Research Working Paper Series 1223, The World Bank.
  17. Anand, Sudhir & Kanbur, S. M. R., 1993. "The Kuznets process and the inequality--development relationship," Journal of Development Economics, Elsevier, vol. 40(1), pages 25-52, February.
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