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Has India's economic growth become more pro-poor in the wake of economic reforms ?

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  • Datt, Gaurav
  • Ravallion, Martin

Abstract

The extent to which India's poor have benefited from the country’s economic growth has long been debated. This paper revisits the issues using a new series of consumption-based poverty measures spanning 50 years, and including a 15-year period after economic reforms began in earnest in the early 1990s. Growth has tended to reduce poverty, including in the post-reform period. There is no robust evidence that the responsiveness of poverty to growth has increased, or decreased, since the reforms began, although there are signs of rising inequality. The impact of growth is higher for poverty measures that reflect distribution below the poverty line, and it is higher using growth rates calculated from household surveys than national accounts. The urban-rural pattern of growth matters to the pace of poverty reduction. However, in marked contrast to the pre-reform period, the post-reform process of urban economic growth has brought significant gains to the rural poor as well as the urban poor.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5103.

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Date of creation: 01 Oct 2009
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Handle: RePEc:wbk:wbrwps:5103

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Keywords: Rural Poverty Reduction; Achieving Shared Growth; Services&Transfers to Poor; Inequality;

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Cited by:
  1. repec:ese:iserwp:2013-29 is not listed on IDEAS
  2. Sen Gupta, Abhijit & Hasan, Rana & Lamba, Sneha, 2014. "Growth, Structural Change, and Poverty Reduction: Evidence from India," MPRA Paper 55247, University Library of Munich, Germany.
  3. Arias-Vazquez , Francisco Javier & Lee, Jean N. & Newhouse, David, 2012. "The role of sectoral growth patterns in labor market development," Policy Research Working Paper Series 6250, The World Bank.
  4. Peragine, Vito & Palmisano, Flaviana & Brunori, Paolo, 2013. "Economic Growth and equality of opportunity," Policy Research Working Paper Series 6599, The World Bank.
  5. Ural Marchand, Beyza, 2012. "Tariff pass-through and the distributional effects of trade liberalization," Journal of Development Economics, Elsevier, vol. 99(2), pages 265-281.
  6. Ravallion, Martin, 2001. "Growth, inequality, and poverty : looking beyond averages," Policy Research Working Paper Series 2558, The World Bank.
  7. Tripathi, Sabyasachi, 2013. "Has urban economic growth in Post-Reform India been pro-poor between 1993-94 and 2009-10?," MPRA Paper 52336, University Library of Munich, Germany.
  8. World Bank, 2003. "India : Sustaining Reform, Reducing Poverty," World Bank Other Operational Studies 14617, The World Bank.
  9. Joshua AIZENMAN & Minsoo LEE & Donghyun PARK, 2012. "The Relationship between Structural Change and Inequality: A Conceptual Overview with Special Reference to Developing Asia," Working Papers DP-2012-13, Economic Research Institute for ASEAN and East Asia (ERIA).
  10. Șeker, Sirma Demir & Jenkins, Stephen P., 2013. "Poverty Trends in Turkey," IZA Discussion Papers 7823, Institute for the Study of Labor (IZA).
  11. Baruah, Joydeep, 2012. "Inclusive Growth under India's Neo-liberal Regime: Towards an Exposition," MPRA Paper 47248, University Library of Munich, Germany.
  12. Shutes, Lindsay & Ganesh-Kumar, Anand & Meijerink, Gerdien W., 2012. "Fluctuating staple prices and household poverty in India," MPRA Paper 40982, University Library of Munich, Germany.
  13. World Bank, 2002. "India : Power Sector Reform and the Poor," World Bank Other Operational Studies 15286, The World Bank.

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