IDEAS home Printed from https://ideas.repec.org/p/inq/inqwps/ecineq2016-403.html
   My bibliography  Save this paper

Growth elasticity of monetary and non-monetary poverty: an application to Iran

Author

Listed:
  • Hosnieh Mahoozi

    (Justus-Liebig University, Germany)

Abstract

The sensitivity of the frequency of poverty to economic growth is one of the central issues of poverty and development discourse. In this paper we estimate the income growth elasticity of poverty and income inequality elasticity of poverty for a panel of 28 provinces of Iran from 1998 to 2009. We also, for the first time, estimate the growth elasticity of multidimensional poverty (estimated via Alkire-Foster method). The results demonstrated the low income growth elasticity of poverty while the income inequality elasticity of poverty is stronger and significant. Similar results are obtained for elasticities of multidimensional poverty. The results suggest that changes in inequality are more important for poverty reduction than in income growth.

Suggested Citation

  • Hosnieh Mahoozi, 2016. "Growth elasticity of monetary and non-monetary poverty: an application to Iran," Working Papers 403, ECINEQ, Society for the Study of Economic Inequality.
    • Handle: RePEc:inq:inqwps:ecineq2016-403
    as

    Download full text from publisher

    File URL: http://www.ecineq.org/milano/WP/ECINEQ2016-403.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ravallion, Martin & Chen, Shaohua, 1997. "What Can New Survey Data Tell Us about Recent Changes in Distribution and Poverty?," The World Bank Economic Review, World Bank, vol. 11(2), pages 357-382, May.
    2. Meng, Xin & Gregory, Robert & Wang, Youjuan, 2005. "Poverty, inequality, and growth in urban China, 1986-2000," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 710-729, December.
    3. Kakwani, N., 1993. "Performance in living standards : An international comparison," Journal of Development Economics, Elsevier, vol. 41(2), pages 307-336, August.
    4. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7), pages 476-487.
    5. Florent Bresson, 2009. "On The Estimation Of Growth And Inequality Elasticities Of Poverty With Grouped Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(2), pages 266-302, June.
    6. Misselhorn, Mark & Klasen, Stephan, 2006. "Determinants of the Growth Semi-Elasticity of Poverty Reduction," Proceedings of the German Development Economics Conference, Berlin 2006 15, Verein für Socialpolitik, Research Committee Development Economics.
    7. Ravallion, Martin & Chen, Shaohua, 2003. "Measuring pro-poor growth," Economics Letters, Elsevier, vol. 78(1), pages 93-99, January.
    8. Sen, Amartya, 1984. "The Living Standard," Oxford Economic Papers, Oxford University Press, vol. 36(0), pages 74-90, Supplemen.
    9. Kraay, Aart, 2006. "When is growth pro-poor? Evidence from a panel of countries," Journal of Development Economics, Elsevier, vol. 80(1), pages 198-227, June.
    10. Adams, Richard Jr., 2004. "Economic Growth, Inequality and Poverty: Estimating the Growth Elasticity of Poverty," World Development, Elsevier, vol. 32(12), pages 1989-2014, December.
    11. Grosse, Melanie & Harttgen, Kenneth & Klasen, Stephan, 2008. "Measuring Pro-Poor Growth in Non-Income Dimensions," World Development, Elsevier, vol. 36(6), pages 1021-1047, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bluhm, Richard & de Crombrugghe, Denis & Szirmai, Adam, 2018. "Poverty accounting," European Economic Review, Elsevier, vol. 104(C), pages 237-255.
    2. Richard Bluhm & Denis de Crombrugghe & Adam Szirmai, 2016. "Poverty Accounting. A fractional response approach to poverty decomposition," Working Papers 413, ECINEQ, Society for the Study of Economic Inequality.
    3. B. Essama‐Nssah & Peter J. Lambert, 2009. "Measuring Pro‐Poorness: A Unifying Approach With New Results," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(3), pages 752-778, September.
    4. Bluhm R & Crombrugghe D.P.I. de & Szirmai A., 2013. "The pace of poverty reduction - A fractional response approach," MERIT Working Papers 2013-051, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Buhong Zheng, 2011. "Consistent comparison of pro-poor growth," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 37(1), pages 61-79, June.
    6. Klasen, Stephan, 2008. "Economic Growth and Poverty Reduction: Measurement Issues using Income and Non-Income Indicators," World Development, Elsevier, vol. 36(3), pages 420-445, March.
    7. Khalid Zaman & Sadaf Shamsuddin, 2018. "Linear and Non-linear Relationships Between Growth, Inequality, and Poverty in a Panel of Latin America and the Caribbean Countries: A New Evidence of Pro-poor Growth," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 136(2), pages 595-619, April.
    8. Luc Christiaensen & Lionel Demery & Jesper Kühl, 2010. "The (Evolving) Role of Agriculture in Poverty Reduction," WIDER Working Paper Series wp-2010-036, World Institute for Development Economic Research (UNU-WIDER).
    9. Perera, Liyanage Devangi H. & Lee, Grace H.Y., 2013. "Have economic growth and institutional quality contributed to poverty and inequality reduction in Asia?," MPRA Paper 52763, University Library of Munich, Germany.
    10. Christiaensen, Luc & Demery, Lionel & Kuhl, Jesper, 2011. "The (evolving) role of agriculture in poverty reduction--An empirical perspective," Journal of Development Economics, Elsevier, vol. 96(2), pages 239-254, November.
    11. Alaa Mohamd Shoukry & Musarrat Jabeen & Khalid Zaman & Showkat Gani & Alamzeb Aamir, 2018. "A note on poverty, growth, and inequality nexus: evidence from a panel of sub-Saharan African countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(5), pages 2173-2195, September.
    12. Kouadio, Hugues Kouassi & Gakpa, Lewis-Landry, 2022. "Do economic growth and institutional quality reduce poverty and inequality in West Africa?," Journal of Policy Modeling, Elsevier, vol. 44(1), pages 41-63.
    13. Desire Avom & Fabrizio Carmignani & Abdour Chowdhury, "undated". "Four Scenarios of Poverty Reduction and the Role of Economic Policy," MRG Discussion Paper Series 3109, School of Economics, University of Queensland, Australia.
    14. Ferreira , Francisco H. G., 2010. "Distributions in motion: economic growth, inequality, and poverty dynamics," Policy Research Working Paper Series 5424, The World Bank.
    15. Catherine KORACHAIS & Patrick GUILLAUMONT, 2008. "When unstable, growth is less pro poor," Working Papers 200827, CERDI.
    16. Vito Peragine & Flaviana Palmisano & Paolo Brunori, 2014. "Economic Growth and Equality of Opportunity," The World Bank Economic Review, World Bank, vol. 28(2), pages 247-281.
    17. Edgar J. Wilson & Kankesu Jayanthakumaran & Reetu Verma, 2022. "Urban poverty, growth, and inequality: A needed paradigm shift?," Review of Development Economics, Wiley Blackwell, vol. 26(2), pages 941-961, May.
    18. Marek Kośny & Gastón Yalonetzky, 2015. "Relative income change and pro-poor growth," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 32(3), pages 311-327, December.
    19. Flaviana Palmisano & Dirk Van de gaer, 2016. "History-dependent growth incidence: a characterization and an application to the economic crisis in Italy," Oxford Economic Papers, Oxford University Press, vol. 68(2), pages 585-603.
    20. Facundo Alvaredo & Leonardo Gasparini, 2013. "Recent Trends in Inequality and Poverty in Developing Countries," CEDLAS, Working Papers 0151, CEDLAS, Universidad Nacional de La Plata.

    More about this item

    Keywords

    Growth elasticity of poverty; income inequality; monetary poverty; Multidimensional poverty.;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inq:inqwps:ecineq2016-403. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Maria Ana Lugo (email available below). General contact details of provider: https://edirc.repec.org/data/ecineea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.