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Growth with Equity is Better for the Poor

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  • Sami Bibi

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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Bibliographic Info

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

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

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

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  1. Ravallion, Martin & Shaohua Chen, 2001. "Measuring pro-poor growth," Policy Research Working Paper Series 2666, The World Bank.
  2. 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.
  3. Dollar, David & Kraay, Aart, 2001. "Growth is good for the poor," Policy Research Working Paper Series 2587, The World Bank.
  4. Sami Bibi & Jean-Yves Duclos, 2005. "Decomposing poverty changes into vertical and horizontal components," Bulletin of Economic Research, Wiley Blackwell, vol. 57(2), pages 205-215, 04.
  5. Duclos, Jean-Yves & Gregoire, Philippe, 2002. "Absolute and Relative Deprivation and the Measurement of Poverty," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(4), pages 471-92, December.
  6. Ravallion, M. & Datt, G., 1991. "Growth and Redistribution Components of Changes in Poverty Measures," Papers 83, World Bank - Living Standards Measurement.
  7. Ravallion, Martin, 2004. "Pro-poor growth : A primer," Policy Research Working Paper Series 3242, The World Bank.
  8. Jean-Yves Duclos, 2009. "What is “Pro-Poor”?," Social Choice and Welfare, Springer, vol. 32(1), pages 37-58, January.
  9. Zheng, Buhong, 1997. " Aggregate Poverty Measures," Journal of Economic Surveys, Wiley Blackwell, vol. 11(2), pages 123-62, June.
  10. 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.
  11. Ravallion, Martin, 1997. "Can high-inequality developing countries escape absolute poverty?," Policy Research Working Paper Series 1775, The World Bank.
  12. Zheng, Buhong, 2000. " Poverty Orderings," Journal of Economic Surveys, Wiley Blackwell, vol. 14(4), pages 427-66, September.
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  14. 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.
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  18. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
  19. Sami Bibi & Jean-Yves Duclos, 2004. "Equity and Policy Effectiveness with Imperfect Targeting," Working Papers 0423, Economic Research Forum, revised Oct 2004.
  20. Kakwani, Nanak & Son, Hyun H., 2006. "Pro-Poor Growth: The Asian Experience," Working Paper Series RP2006/56, World Institute for Development Economic Research (UNU-WIDER).
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  25. Russell Davidson, 2006. "Stochastic Dominance," Departmental Working Papers 2006-19, McGill University, Department of Economics.
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Cited by:
  1. Faouzi SBOUI, 2012. "Effects Of Growth And Inequality," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 35, pages 57-80.

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