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Is Growth Enough? Macroeconomic Policy and Poverty Reduction

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Author Info
Charalambos G. Tsangarides
Dhaneshwar Ghura
Carlos Leite

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Abstract

The paper investigates the existence of "super pro-poor" policies-that is, policies that directly influence the income of the poor after accounting for the effect of growth. It uses a dynamic panel estimator to capture both across- and within-country effects, and a Bayesian-type robustness check to account for model uncertainty. The findings confirm that growth raises the income of the poor, although this relationship is less than one-to-one. The analysis also identifies four super pro-poor conditions that are influenced by policy: inflation, government size, educational achievement, and financial development.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 02/118.

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Length: 39 pages
Date of creation: 01 Aug 2002
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Handle: RePEc:imf:imfwpa:02/118

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Related research
Keywords: Economic growth ; Economic policy ; Poverty ; Economic models ;

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Cited by:
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  1. Anne Epaulard, 2003. "Macroeconomic Performance and Poverty Reduction," IMF Working Papers 03/72, International Monetary Fund. [Downloadable!]
  2. Rolf Maier, 2005. "External Debt and Pro-Poor Growth," Macroeconomics 0504031, EconWPA. [Downloadable!]
  3. Magnus, J.R. & Powell, O.R. & Prüfer, P., 2008. "A Comparison of Two Averaging Techniques with an Application to Growth Empirics," Discussion Paper 2008-39, Tilburg University, Center for Economic Research. [Downloadable!]
  4. Anne O. Krueger & Andrew Berg, 2003. "Trade, Growth, and Poverty: A Selective Survey," IMF Working Papers 03/30, International Monetary Fund. [Downloadable!]
  5. Charalambos G. Tsangarides, 2005. "Growth Empirics under Model Uncertainty: Is Africa Different?," IMF Working Papers 05/18, International Monetary Fund. [Downloadable!]
  6. Rolf Maier, 2005. "Trade Policy and Pro-Poor Growth," International Trade 0504007, EconWPA. [Downloadable!]
  7. Bonilla, Eugenio Diaz, 2008. "Global macroeconomic developments and poverty:," IFPRI discussion papers 766, International Food Policy Research Institute (IFPRI). [Downloadable!]
  8. Maier, Rolf, 2005. "External Debt and Pro-Poor Growth," Proceedings of the German Development Economics Conference, Kiel 2005 23, Verein für Socialpolitik, Research Committee Development Economics. [Downloadable!]
  9. Caroline M. Robb, 2003. "Poverty and Social Impact Analysis - Linking Macroeconomic Policies to Poverty Outcomes: Summary of Early Experiences," IMF Working Papers 03/43, International Monetary Fund. [Downloadable!]
  10. Klump, Rainer & Pruefer, Patricia, 2006. "Prioritizing policies for pro-poor growth: applying bayesian model averaging to Vietnam," Discussion Paper 117, Tilburg University, Center for Economic Research. [Downloadable!]
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