Advanced Search
MyIDEAS: Login to save this paper or follow this series

Growth, Income Distribution, and Poverty: A Review

Contents:

Author Info

  • Bigsten, Arne
  • Levin, Jorgen

Abstract

This paper reviews the recent literature dealing with the relationships between economic growth, income distribution, and poverty. This generally fails to find any systematic pattern of change in income distribution during recent decades. Neither does it find any systematic link from fast growth to increasing inequality. Some recent empirical evidence has tended to confirm the negative impact of inequality on growth, on the other hand. Others have found that the level of initial income inequality is not a robust explanatory factor of growth, though high inequality in the distribution of assets, such as land, has a significantly negative effect on growth. Possible channels are credit rationing, reduced possibilities for participation in the political process, and social conflicts. Among the strategic elements that contributed to reduced poverty are: an outward-oriented strategy of export-led growth, based on labour-intensive manufacturing; agricultural and rural development, with encouragement of new technologies; investment in physical infrastructure and human capital; efficient institutions that provide the right set of incentives to farmers and entrepreneurs; and social policies to promote health, education, and social capital, as well as safety nets to protect the poor. Countries that have been successful in terms of economic growth are also very likely to be successful in reducing poverty. Poverty can be reduced if there is sufficient economic growth. Growth can be substantial if the policy and institutional environment is right.

(This abstract was borrowed from another version of this item.)

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.wider.unu.edu/stc/repec/pdfs/dp2001/dp2001-129.pdf
Download Restriction: no

Bibliographic Info

Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper DP2001/129.

as in new window
Length: 28 pages
Date of creation: 2001
Date of revision:
Handle: RePEc:unu:wpaper:dp2001-129

Contact details of provider:
Postal: Katajanokanlaituri 6B, 00160 Helsinki
Phone: +358-9-6159911
Fax: +358-9-61599333
Email:
Web page: http://www.wider.unu.edu/
More information through EDIRC

Related research

Keywords: Pro-poor growth; Income distribution; Poverty; Survey;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Sprout, Ronald V A & Weaver, James H, 1992. "International Distribution of Income: 1960-1987," Kyklos, Wiley Blackwell, vol. 45(2), pages 237-58.
  2. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 94(5), pages 1002-37, October.
  3. Simon Appleton & Arne Bigsten & Damiano Kulundu Manda, 1999. "Educational expansion and economic decline: returns to education in Kenya, 1978-1995," CSAE Working Paper Series 1999-06, Centre for the Study of African Economies, University of Oxford.
  4. Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, vol. 57(2), pages 259-287.
  5. Thomas, D. & Lavy, V. & Strauss, J., 1995. "Public Policy and Anthropometric Outcomes in the Cote d'Ivoire," Papers, RAND - Labor and Population Program 95-07, RAND - Labor and Population Program.
  6. Thomas, Duncan & Strauss, John & Henriques, Maria-Helena, 1990. "Child survival, height for age and household characteristics in Brazil," Journal of Development Economics, Elsevier, vol. 33(2), pages 197-234, October.
  7. Ravallion, Martin & Datt, Gaurav, 1995. "Growth and poverty in rural India," Policy Research Working Paper Series 1405, The World Bank.
  8. Kanbur, Ravi & Lustig, Nora, 1999. "Why is Inequality Back on the Agenda?," Working Papers 127690, Cornell University, Department of Applied Economics and Management.
  9. Thorbecke, Erik & Berrian, David, 1992. "Budgetary rules to minimize societal poverty in a general equilibrium context," Journal of Development Economics, Elsevier, vol. 39(2), pages 189-205, October.
  10. Persson, T. & Tabellini, G., 1993. "Is Inequality Harmful for Growth," Papers, Stockholm - International Economic Studies 537, Stockholm - International Economic Studies.
  11. Robert J. Barro, 1998. "Determinants of Economic Growth: A Cross-Country Empirical Study," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522543, December.
  12. Milanovic, Branko, 1999. "True world income distribution, 1988 and 1993 - first calculations, based on household surveys alone," Policy Research Working Paper Series 2244, The World Bank.
  13. Bourguignon, F. & Morrisson, C., 1995. "Inequality and Development: The Role of Dualism," DELTA Working Papers 95-32, DELTA (Ecole normale supérieure).
  14. Ablo, Emmanuel & Reinikka, Ritva, 1998. "Do budgets really matter? - evidence from public spending on education and health in Uganda," Policy Research Working Paper Series 1926, The World Bank.
  15. Ferreira, Francisco H. G. & Paes de Barrios, Ricardo, 1999. "The slippery slope : explaining the increase in extreme poverty in urban Brazil, 1976-96," Policy Research Working Paper Series 2210, The World Bank.
  16. Strauss, J. & Thomas, D., 1995. "Empirical Modeling of Household and Family Decisions," Papers, RAND - Reprint Series 95-12, RAND - Reprint Series.
  17. Chia, Ngee-Choon & Wahba, Sadek & Whalley, John, 1994. "Poverty-Reducing Targeting Programmes: A General Equilibrium Approach," Journal of African Economies, Centre for the Study of African Economies (CSAE), Centre for the Study of African Economies (CSAE), vol. 3(2), pages 309-38, October.
  18. Devarajan, Shantayanan & Danyang, Xie & Zou, Heng-fu, 1998. "Should public capital be subsidized or provided?," Journal of Monetary Economics, Elsevier, vol. 41(2), pages 319-331, April.
  19. Steve Kayizzi‐Mugerwa & Jorgen Levin, 1994. "Adjustment and Poverty: A Review of the African Experience," African Development Review, African Development Bank, vol. 6(2), pages 1-39.
  20. Demery, Lionel & Squire, Lyn, 1996. "Macroeconomic Adjustment and Poverty in Africa: An Emerging Picture," World Bank Research Observer, World Bank Group, World Bank Group, vol. 11(1), pages 39-59, February.
  21. Blunch, Niels-Hugo & Verner, Dorte, 1999. "Sector growth and the dual economy model - evidence from Cote d'Ivoire, Ghana, and Zimbabwe," Policy Research Working Paper Series 2175, The World Bank.
  22. Castro-Leal, Florencia & Dayton, Julia & Demery, Lionel & Mehra, Kalpana, 1999. "Public Social Spending in Africa: Do the Poor Benefit?," World Bank Research Observer, World Bank Group, World Bank Group, vol. 14(1), pages 49-72, February.
  23. Alesina, Alberto F & Rodrik, Dani, 1991. "Distributive Politics and Economic Growth," CEPR Discussion Papers 565, C.E.P.R. Discussion Papers.
  24. Howard White, 1999. "Global poverty reduction: are we heading in the right direction?," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(4), pages 503-519.
  25. Boltho, Andrea & Toniolo, Gianni, 1999. "The Assessment: The Twentieth Century--Achievements, Failures, Lessons," Oxford Review of Economic Policy, Oxford University Press, vol. 15(4), pages 1-17, Winter.
  26. Toye, John, 2000. "Fiscal Crisis and Fiscal Reform in Developing Countries," Cambridge Journal of Economics, Oxford University Press, Oxford University Press, vol. 24(1), pages 21-44, January.
  27. Shantayanan Devarajan & Vinaya Swaroop & Heng-fu Zou, 1996. "The composition of public expenditure and economic growth," CEMA Working Papers, China Economics and Management Academy, Central University of Finance and Economics 77, China Economics and Management Academy, Central University of Finance and Economics.
  28. Ranis, G. & Ramirez, A. & Stewart, F., 1997. "Economic Growth and Human Development," Papers, Yale - Economic Growth Center 787, Yale - Economic Growth Center.
  29. Kakwani, N., 1993. "Performance in living standards : An international comparison," Journal of Development Economics, Elsevier, vol. 41(2), pages 307-336, August.
  30. Thomas, D. & Lavy, V. & Strauss, J., 1992. "Public Policy and Anthropometric Outcomes in Cote d'Ivoire," Papers, World Bank - Living Standards Measurement 89, World Bank - Living Standards Measurement.
  31. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  32. Filmer, Deon & Pritchett, Lant, 1999. "The impact of public spending on health: does money matter?," Social Science & Medicine, Elsevier, vol. 49(10), pages 1309-1323, November.
  33. Peretto, Pietro F., 1997. "Industrial Development, Technological Change, and Long-RunGrowth," Working Papers, Duke University, Department of Economics 97-10, Duke University, Department of Economics.
  34. Kumar Sah, Raaj & Weitsman, Martin L., 1991. "A proposal for using incentive precommitments in public enterprise funding," World Development, Elsevier, vol. 19(6), pages 595-605, June.
  35. David E. Sahn & Stephen D. Younger, 1999. "Dominance Testing of Social Sector Expenditures and Taxes in Africa," IMF Working Papers 99/172, International Monetary Fund.
  36. Gustav Ranis, 2000. "Strategies for Success in Human Development," Working Papers, Economic Growth Center, Yale University 808, Economic Growth Center, Yale University.
  37. Rodrik, Dani, 1999. " Where Did All the Growth Go? External Shocks, Social Conflict, and Growth Collapses," Journal of Economic Growth, Springer, vol. 4(4), pages 385-412, December.
  38. Ranis, G. & Stewart, F., 2000. "Strategies for Success in Human Development," Papers, Yale - Economic Growth Center 808, Yale - Economic Growth Center.
  39. Peter Lloyd-Sherlock, 2000. "Failing the needy: public social spending in Latin America," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(1), pages 101-119.
  40. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output Per Worker Than Others?," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 114(1), pages 83-116, February.
  41. Birdsall, Nancy & Ross, David & Sabot, Richard, 1995. "Inequality and Growth Reconsidered: Lessons from East Asia," World Bank Economic Review, World Bank Group, World Bank Group, vol. 9(3), pages 477-508, September.
  42. Deepak Lal, 1993. "India and China: Contrasts in Economic Liberalization," UCLA Economics Working Papers 706, UCLA Department of Economics.
  43. Ali, Ali Abdel Gadir, 1998. "Dealing with Poverty and Income Distribution Issues in Developing Countries: Cross-Regional Experiences," Journal of African Economies, Centre for the Study of African Economies (CSAE), Centre for the Study of African Economies (CSAE), vol. 7(0), pages 77-115, December.
  44. Sudhir Anand & Martin Ravallion, 1993. "Human Development in Poor Countries: On the Role of Private Incomes and Public Services," Journal of Economic Perspectives, American Economic Association, vol. 7(1), pages 133-150, Winter.
  45. Ravallion, Martin & Chen, Shaohua, 1997. "What Can New Survey Data Tell Us about Recent Changes in Distribution and Poverty?," World Bank Economic Review, World Bank Group, World Bank Group, vol. 11(2), pages 357-82, May.
  46. Frances Stewart, . "Income Distribution and Development," QEH Working Papers qehwps37, Queen Elizabeth House, University of Oxford.
  47. Bigsten, Arne & Moene, Karl Ove, 1996. "Growth and Rent Dissipation: The Case of Kenya," Journal of African Economies, Centre for the Study of African Economies (CSAE), Centre for the Study of African Economies (CSAE), vol. 5(2), pages 177-98, June.
  48. Bouis, Howarth E. & Haddad, Lawrence J., 1992. "Are estimates of calorie-income fxelasticities too high? : A recalibration of the plausible range," Journal of Development Economics, Elsevier, vol. 39(2), pages 333-364, October.
  49. Paul Collier & Jan Willem Gunning, 1997. "Explaining African economic performance," CSAE Working Paper Series 1997-02.2, Centre for the Study of African Economies, University of Oxford.
  50. Paul Mosley, 1999. "Micro-macro linkages in financial markets: the impact of financial liberalization on access to rural credit in four African countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(3), pages 367-384.
  51. Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," World Bank Economic Review, World Bank Group, World Bank Group, vol. 10(1), pages 1-25, January.
  52. Dorosh, Paul A. & Sahn, David E., 2000. "A General Equilibrium Analysis of the Effect of Macroeconomic Adjustment on Poverty in Africa," Journal of Policy Modeling, Elsevier, Elsevier, vol. 22(6), pages 753-776, November.
  53. Leamer, Edward E, 1987. "Paths of Development in the Three-Factor, n-Good General Equilibrium Model," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 95(5), pages 961-99, October.
  54. De Donder, Philippe & Hindriks, Jean, 1998. " The Political Economy of Targeting," Public Choice, Springer, vol. 95(1-2), pages 177-200, April.
  55. van de Walle, Dominique, 1998. "Targeting Revisited," World Bank Research Observer, World Bank Group, World Bank Group, vol. 13(2), pages 231-48, August.
  56. Bob Baulch & John Hoddinott, 2000. "Economic mobility and poverty dynamics in developing countries," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 1-24.
  57. Bell, Clive & Rich, Robert, 1994. "Rural Poverty and Aggregate Agricultural Performance in Post-independence India," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 56(2), pages 111-33, May.
  58. Kristin J. Forbes, 2000. "A Reassessment of the Relationship between Inequality and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 869-887, September.
  59. Delgado, Christopher L. & Hopkins, Jane & Kelly , Valerie & Hazell, P. B. R. & McKenna, Anna A. & Gruhn, Peter & Hojjati, Behjat & Sil, Jayashree & Courbois, Claude, 1998. "Agricultural growth linkages in Sub-Saharan Africa:," Research reports 107, International Food Policy Research Institute (IFPRI).
  60. Andrew Goudie & Paul Ladd, 1999. "Economic growth, poverty and inequality," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(2), pages 177-195.
  61. Alderman, Harold, et al, 1997. "The Income Gap in Cognitive Skills in Rural Pakistan," Economic Development and Cultural Change, University of Chicago Press, vol. 46(1), pages 97-122, October.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Digdowiseiso, Kumba, 2009. "Education inequality, economic growth, and income inequality: Evidence from Indonesia, 1996-2005," MPRA Paper 17792, University Library of Munich, Germany.
  2. Majid Sameti & Leila Rafie, 2010. "Interaction of Income Distribution, Taxes and Economic Growth (The Case of Iran and Some Selected East Asian Countries)," Iranian Economic Review, Economics faculty of Tehran university, vol. 15(1), pages 67-81, winter.
  3. Bigsten, Arne & Kebede, Bereket & Shimeles, Abebe & Taddesse, Mekonnen, 2003. "Growth and Poverty Reduction in Ethiopia: Evidence from Household Panel Surveys," World Development, Elsevier, vol. 31(1), pages 87-106, January.
  4. Dorothée BOCCANFUSO & Tambi Samuel KABORE, 2004. "Macroeconomic Growth, Sectoral Quality Of Growth And Poverty In Developing Countries: Measure And Application To Burkina Faso," Cahiers de recherche, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke 04-07, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
  5. Dorothée Boccanfuso & Samuel Tambi Kaboré, 2004. "Croissance, inégalité et pauvreté dans les années quatre-vingt-dix au Burkina Faso et au Sénégal," Revue d’économie du développement, De Boeck Université, vol. 18(2), pages 9-35.
  6. Svedberg, Peter, 2002. "Income Distribution Across Countries: How is it Measured and What Do the Results Show?," Seminar Papers, Stockholm University, Institute for International Economic Studies 698, Stockholm University, Institute for International Economic Studies.
  7. Samuel Tambi Kaboré, 2004. "Qualité de la croissance économique et pauvreté dans les pays en développement : mesure et application au Burkina Faso," Revue d’économie du développement, De Boeck Université, vol. 18(2), pages 37-63.
  8. Bigsten, Arne & Durevall, Dick, 2004. "Kenya’s Development Path and Factor Prices 1964-2000," Working Papers in Economics 142, University of Gothenburg, Department of Economics.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:unu:wpaper:dp2001-129. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruck Tadesse).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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