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The Poverty Elasticity of Growth

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  • Rasmus Heltberg

Abstract

How much does economic growth contribute to poverty reduction? I discuss analytical and empirical approaches to assess the poverty elasticity of growth, and emphasize that the relationship between growth and poverty change is non-constant. For a given poverty measure, it depends on initial inequality and on the location of the poverty line relative to mean income. In most cases, growth is more important for poverty reduction than changes in inequality, but this does not tender inequality unimportant.

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  • Rasmus Heltberg, 2002. "The Poverty Elasticity of Growth," WIDER Working Paper Series DP2002-21, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2002-21
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    2. Katsushi Imai & Raghav Gaiha & Ganesh Thapa, 2010. "Is the Millennium Development Goal on Poverty Still Achievable? The Role of Institutions, Finance and Openness," Oxford Development Studies, Taylor & Francis Journals, vol. 38(3), pages 309-337.
    3. Bernhard G. GUNTER & Rolph HOEVEN, 2004. "The social dimension of globalization: A review of the literature," International Labour Review, International Labour Organization, vol. 143(1-2), pages 7-43, March.
    4. Manmohan Agarwal & Pragya Atri & Srikanta Kundu, 2017. "Foreign Direct Investment and Poverty Reduction," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 18(2), pages 135-157, September.
    5. Thomas Gries & Margarete Redlin, 2010. "Short-run and Long-run Dynamics of Growth,Inequality and Poverty in the Developing World," Working Papers CIE 29, Paderborn University, CIE Center for International Economics.
    6. Vincenzo Lombardo, 2011. "Growth and Inequality Effects on Poverty Reduction in Italy," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 241-280.
    7. Enisan Akinlo, Anthony, 2021. "Dynamic Linkages Between Government-Interventionists’ Policies, Growth, Inequality And Poverty In Nigeria," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 8(2), pages 45-64, June.
    8. Fassil Fanta & Mukti Upadhyay, 2009. "Poverty reduction, economic growth and inequality in Africa," Applied Economics Letters, Taylor & Francis Journals, vol. 16(18), pages 1791-1794.
    9. Mr. Sanjeev Gupta & Ms. Catherine A Pattillo & Mr. Kevin J Carey, 2005. "Sustaining Growth Accelerations and Pro-Poor Growth in Africa," IMF Working Papers 2005/195, International Monetary Fund.
    10. Agénor, Pierre-Richard & Bayraktar, Nihal & El Aynaoui, Karim, 2008. "Roads out of poverty? Assessing the links between aid, public investment, growth, and poverty reduction," Journal of Development Economics, Elsevier, vol. 86(2), pages 277-295, June.
    11. Yin Zhang & Guanghua Wan, 2005. "Why Do Poverty Rates Differ From Region to Region?: the Case of Urban China," WIDER Working Paper Series RP2005-56, World Institute for Development Economic Research (UNU-WIDER).
    12. Maria Carmela Miccoli & Antonella Biscione, 2016. "Economic Growth, Spatial Redistribution Of Population And Poverty In Albania," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 70(3), pages 89-100, July-Sept.
    13. World Bank, 2005. "Thailand : Northeast Economic Development Report," World Bank Publications - Reports 8808, The World Bank Group.
    14. Jaideep Oberoi & Syed Ahsan, 2003. "Inequality, Well-being and Institutions in Latin America and the Caribbean," CESifo Working Paper Series 846, CESifo.
    15. Lorenza Campagnolo & Fabio Eboli & Marinella Davide, 2016. "Can Paris deal boost SDGs achievement? An assesment of climate-sustainabilty co-benefits or side-effects," EcoMod2016 9635, EcoMod.
    16. Sanjay G. Reddy & Antoine Heuty, 2006. "Achieving the Millennium Development Goals: What’s wrong with existing analytical models?," Working Papers 30, United Nations, Department of Economics and Social Affairs.
    17. Tabuga, Aubrey D. & Reyes, Celia M., 2011. "A Note on Economic Growth, Inequality, and Poverty in the Philippines," Discussion Papers DP 2011-30, Philippine Institute for Development Studies.

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