A Structural Analysis of Growth and Poverty in the Short-Term
Abstract"Growth is good for the poor" is a ubíquítous statement and one generally backed by theory, research and history. In the long-run, growth reduces poverty. Yet, growth in output - per se - ís neíther a necessary nor a sutficíent condítíon for poverty reductíon, especíally in the short-term And the short-term matters a great deal to tbc poor. `Che paper uses a number of parametric, non-parametric and decomposition methodologies to assess regional changes in output, income, poverty and inequality in one transition economy which experienced fast growth and fast poverty reductìon over a short period of time. Tbc purpose is to test what is behind this simple covariance that led observers to conclude that output growth deternined poverty reduction. Combining macro e micro regional data, we find a very small trickle down effect of output growth on household incomes and no evidence that output growth is correlated with poverty reduction. We find ínstead that a modest growth in household íncome combined with a pro-poor distribution of such growth explains well poverty reduction. Effective shorterm poverty reductíon polícies should focus on pro-poor actions where pro-poor means making sure that marginal changes among the incomes of the poor outperform marginaI changes among theincomes of the rich.
Download InfoIf 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.
Bibliographic InfoPaper provided by University of Turin in its series Department of Economics and Statistics Cognetti de Martiis. Working Papers with number 200705.
Length: 23 pages
Date of creation: Jun 2007
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-23 (All new papers)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Paolo Verme, 2010.
"Happiness, deprivation and the alter ego,"
155, ECINEQ, Society for the Study of Economic Inequality.
- Bergh, Andreas & Nilsson, Therese, 2011. "Globalization and Absolute Poverty – A Panel Data Study," Working Paper Series 862, Research Institute of Industrial Economics.
- Tilman Brück & Damir Esenaliev & Antje Kroeger & Alma Kudebayeva & Bakhrom Mirkasimov & Susan Steiner, 2012.
"Household Survey Data for Research on Well-Being and Behavior in Central Asia,"
Discussion Papers of DIW Berlin
1257, DIW Berlin, German Institute for Economic Research.
- Brück, Tilman & Esenaliev, Damir & Kroeger, Antje & Kudebayeva, Alma & Mirkasimov, Bakhrom & Steiner, Susan, 2012. "Household Survey Data for Research on Well-Being and Behavior in Central Asia," IZA Discussion Papers 7055, Institute for the Study of Labor (IZA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Piero Cavaleri) or (Marina Grazioli).
If references are entirely missing, you can add them using this form.