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A unified framework for pro-poor growth analysis

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  • Essama-Nssah, B.

Abstract

Starting with a general impact indicator as an evaluation criterion, The author offers an integrative framework for a unified discussion of various concepts and measures of pro-poor growth emerging from the current literature. He shows that whether economic growth is considered pro-poor depends fundamentally on the choice of evaluative weights. In addition, the author's framework leads to a new indicator of the rate of pro-poor growth that can be interpreted as the equally distributed equivalent growth rate. This is a distribution-adjusted rate of growth that depends on the chosen level of inequality aversion. Illustrations based on data for Indonesia in the 1990s show a strong link between growth and poverty reduction in that country. A decomposition of the observed poverty outcomes reveals the extent to which changes in inequality have blunted the poverty impacts of both growth and contraction. Finally, the results also demonstrate that absolute and relative indicators of pro-poor growth can lead to conflicting conclusions from the same set of facts.

Suggested Citation

  • Essama-Nssah, B., 2004. "A unified framework for pro-poor growth analysis," Policy Research Working Paper Series 3397, The World Bank.
    • Handle: RePEc:wbk:wbrwps:3397
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    References listed on IDEAS

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    Cited by:

    1. Leonardo Gasparini & Federico Gutiérrez & Leopoldo Tornarolli, 2007. "Growth And Income Poverty In Latin America And The Caribbean: Evidence From Household Surveys," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(2), pages 209-245, June.
    2. Ismael Ahamdanech & Carmelo García-Pérez & Mercedes Prieto-Alaiz, 2020. "A Stochastic Dominance Approach to Evaluating Pro-Poor Growth—An Application to the Spanish Case," Sustainability, MDPI, vol. 12(5), pages 1-16, February.
    3. Negre, Mario, 2010. "Concepts and Operationalization of Pro-Poor Growth," WIDER Working Paper Series 047, World Institute for Development Economic Research (UNU-WIDER).

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