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Is Growth Enough? Macroeconomic Policy and Poverty Reduction

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Author Info

  • Carlos Leite
  • Charalambos G. Tsangarides
  • Dhaneshwar Ghura

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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Bibliographic Info

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

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Length: 39
Date of creation: 01 Jul 2002
Date of revision:
Handle: RePEc:imf:imfwpa:02/118

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Related research

Keywords: Economic growth; probability; logarithm; equation; correlation; equations; growth rates; survey; statistics; statistic; sample mean; per capita income; economic growth rates; sensitivity analysis; bayesian analysis; statistical significance; number of regressors; standard deviation; number of variables; urban statistical theory; sample size; gnp; probability model; sampling distribution; sampling; econometrics; probabilities; national income; difference equations; probability value; correlations; goodness of fit; rapid statistical tests; total consumption; bayes factors; standard deviations; bayes ? theorem; simultaneous equation; statistical measures; gdp per capita; predictions; difference equation; probability density; random sample; growth rate; hypothesis testing; empirical model; empirical exercise; random variables; finite sample; dummy variables; linear models; measurement error; sensitivity analyses;

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Citations

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Cited by:
  1. Klump, R. & Prüfer, P., 2006. "Prioritizing Policies for Pro-Poor Growth: Applying Bayesian Model Averaging to Vietnam," Discussion Paper, Tilburg University, Center for Economic Research 2006-117, Tilburg University, Center for Economic Research.
  2. Anis Chowdhury, 2012. "Structural Adjustment and Crises –Which Way Now?," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, Faculty of Economics and Administration, University of Malaya, vol. 4(1), pages 85-118, April.
  3. Magnus, J.R. & Powell, O.R. & Prüfer, P., 2008. "A Comparison of Two Averaging Techniques with an Application to Growth Empirics," Discussion Paper, Tilburg University, Center for Economic Research 2008-39, Tilburg University, Center for Economic Research.
  4. Caroline M. Robb, 2003. "Poverty and Social Impact Analysis," IMF Working Papers 03/43, International Monetary Fund.
  5. A. R. Kemal, 2003. "Structural Adjustment and Poverty in Pakistan," MIMAP Technical Paper Series, Pakistan Institute of Development Economics 2003:14, Pakistan Institute of Development Economics.
  6. Rolf Maier, 2005. "Exchange Rate Regimes and Pro-Poor Growth," International Finance, EconWPA 0504008, EconWPA.
  7. Charalambos G. Tsangarides, 2004. "A Bayesian Approach to Model Uncertainty," IMF Working Papers 04/68, International Monetary Fund.
  8. Anne Epaulard, 2003. "Macroeconomic Performance and Poverty Reduction," IMF Working Papers 03/72, International Monetary Fund.
  9. Rolf Maier, 2005. "External Debt and Pro-Poor Growth," Macroeconomics, EconWPA 0504031, EconWPA.
  10. Charalambos G. Tsangarides, 2005. "Growth Empirics Under Model Uncertainty," IMF Working Papers 05/18, International Monetary Fund.
  11. Rolf Maier, 2005. "Trade Policy and Pro-Poor Growth," International Trade, EconWPA 0504007, EconWPA.
  12. Valdés, Alberto & Foster, William, 2010. "Reflections on the Role of Agriculture in Pro-Poor Growth," World Development, Elsevier, Elsevier, vol. 38(10), pages 1362-1374, October.
  13. Bonilla, Eugenio Diaz, 2008. "Global macroeconomic developments and poverty:," IFPRI discussion papers, International Food Policy Research Institute (IFPRI) 766, International Food Policy Research Institute (IFPRI).
  14. Oberdabernig, Doris A., 2013. "Revisiting the Effects of IMF Programs on Poverty and Inequality," World Development, Elsevier, Elsevier, vol. 46(C), pages 113-142.
  15. Juthathip Jongwanich, . "Workers’ Remittances, Economic Growth and Poverty in Developing Asia and the Pacific Countries," MPDD Working Paper Series, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) WP/07/01, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
  16. 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.

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