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Growth with Equity is Better for the Poor

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Author Info
Sami Bibi

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Abstract

Putting the combat against poverty to the fore as the main objective of the development process has raised the issue of the linkage between economic growth, inequality and poverty. There is now a growing agreement that both the rate and the distributional impact of growth are important in fighting poverty. This means that pro-poorness of a given growth rate is more important in certain cases than in others. Using complete and partial poverty orderings, this paper suggests indices of pro-poor growth according to different ethical principles. Evidence from Mexico and Tunisia shows that economic growth periods were to a large extent equitable and even largely pro-poor during the last two decades.

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Paper provided by CIRPEE in its series Cahiers de recherche with number 0640.

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Date of creation: 2006
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Handle: RePEc:lvl:lacicr:0640

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Related research
Keywords: Pro-poor growth; Poverty measurement; Robustness analysis;

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Find related papers by JEL classification:
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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  1. Bhagwati, Jagdish N., 1988. "Poverty and public policy," World Development, Elsevier, vol. 16(5), pages 539-555, May. [Downloadable!] (restricted)
  2. Sami Bibi & Jean-Yves Duclos, 2005. "Decomposing poverty changes into vertical and horizontal components," Bulletin of Economic Research, Blackwell Publishing, vol. 57(2), pages 205-215, 04. [Downloadable!] (restricted)
    Other versions:
  3. Bourguignon, F. & Fields, G., 1995. "Discontinuous Losses from Poverty, Generalized P& Measures and Optimal Transfers to the Poor," DELTA Working Papers 95-06, DELTA (Ecole normale supérieure).
  4. Theo S Eicher & Cecilia Garcia Penalosa, . "Inequality and Growth," Discussion Papers in Economics at the University of Washington 0083, Department of Economics at the University of Washington. [Downloadable!]
    Other versions:
  5. Sami Bibi & Jean-Yves Duclos, 2007. "Poverty-decreasing indirect tax reforms: Evidence from Tunisia," International Tax and Public Finance, Springer, vol. 14(2), pages 165-190, April. [Downloadable!] (restricted)
    Other versions:
  6. François Bourguignon, 2002. "The growth elasticity of poverty reduction : explaining heterogeneity across countries and time periods," DELTA Working Papers 2002-03, DELTA (Ecole normale supérieure). [Downloadable!]
  7. Foster, James E & Shorrocks, Anthony F, 1988. "Poverty Orderings," Econometrica, Econometric Society, vol. 56(1), pages 173-77, January. [Downloadable!] (restricted)
  8. Kakwani, Nanak & Son, Hyun H., 2006. "Pro-Poor Growth: The Asian Experience," Working Papers RP2006/56, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  9. Ravallion, Martin, 1997. "Can high-inequality developing countries escape absolute poverty?," Economics Letters, Elsevier, vol. 56(1), pages 51-57, September. [Downloadable!] (restricted)
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  10. Ravallion, Martin, 2004. "Pro-poor growth : A primer," Policy Research Working Paper Series 3242, The World Bank. [Downloadable!]
  11. Duclos, Jean-Yves & Gregoire, Philippe, 2002. "Absolute and Relative Deprivation and the Measurement of Poverty," Review of Income and Wealth, Blackwell Publishing, vol. 48(4), pages 471-92, December. [Downloadable!] (restricted)
    Other versions:
  12. Jenkins, Stephen P & Lambert, Peter J, 1997. "Three 'I's of Poverty Curves, with an Analysis of UK Poverty Trends," Oxford Economic Papers, Oxford University Press, vol. 49(3), pages 317-27, July. [Downloadable!] (restricted)
  13. Zheng, Buhong, 1997. " Aggregate Poverty Measures," Journal of Economic Surveys, Blackwell Publishing, vol. 11(2), pages 123-62, June. [Downloadable!] (restricted)
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    Other versions:
  15. Hagenaars, Aldi J M, 1987. "A Class of Poverty Indices," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 28(3), pages 583-607, October. [Downloadable!] (restricted)
  16. Ravallion, M. & Datt, G., 1991. "Growth and Redistribution Components of Changes in Poverty Measures," Papers 83, World Bank - Living Standards Measurement.
  17. Bibi, Sami & Duclos, Jean-Yves, 2007. "Equity and policy effectiveness with imperfect targeting," Journal of Development Economics, Elsevier, vol. 83(1), pages 109-140, May. [Downloadable!] (restricted)
    Other versions:
  18. Zheng, Buhong, 2000. " Poverty Orderings," Journal of Economic Surveys, Blackwell Publishing, vol. 14(4), pages 427-66, September. [Downloadable!] (restricted)
  19. Dollar, David & Kraay, Aart, 2002. " Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September. [Downloadable!] (restricted)
    Other versions:
  20. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September. [Downloadable!] (restricted)
  21. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March. [Downloadable!] (restricted)
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  23. Kakwani, Nanak, 1980. "On a Class of Poverty Measures," Econometrica, Econometric Society, vol. 48(2), pages 437-46, March. [Downloadable!] (restricted)
  24. Jean-Yves Duclos & Quentin Wodon, 2004. "What is "Pro-Poor"?," Cahiers de recherche 0425, CIRPEE. [Downloadable!]
    Other versions:
  25. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May. [Downloadable!] (restricted)
  26. Russell Davidson, 2006. "Stochastic Dominance," Departmental Working Papers 2006-19, McGill University, Department of Economics. [Downloadable!]
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