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Testing For Pro-Poorness Of Growth, With An Application To Mexico

Author

Listed:
  • Abdelkrim Araar
  • Jean-Yves Duclos
  • Mathieu Audet
  • Paul Makdissi

Abstract

This paper proposes techniques to test for whether growth has been pro-poor. We first review different definitions of pro-poorness and argue for the use of methods that can generate results that are robust over classes of pro-poor measures and ranges of poverty lines. We then provide statistical procedures that rely on the use of sample data to infer whether growth has been pro-poor in a population. We apply these procedures to Mexican household surveys for 1992, 1998, and 2004. We find strong normative and statistical evidence that Mexican growth has been absolutely anti-poor between 1992 and 1998, absolutely pro-poor between 1998 and 2004 and between 1992 and 2004, and relatively pro-poor between 1992 and 2004 and between 1998 and 2004. The relative assessment of the period between 1992 and 1998 is statistically too weak to lead to a robust evaluation of that period. Copyright 2009 The Authors. Journal compilation International Association for Research in Income and Wealth 2009.

Suggested Citation

  • Abdelkrim Araar & Jean-Yves Duclos & Mathieu Audet & Paul Makdissi, 2009. "Testing For Pro-Poorness Of Growth, With An Application To Mexico," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(4), pages 853-881, December.
  • Handle: RePEc:bla:revinw:v:55:y:2009:i:4:p:853-881
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Poutvaara, Panu & Borjas, George & Kauppinen, Ilpo, 2015. "Self-Selection of Emigrants: Theory and Evidence on Stochastic Dominance in Observable and Unobservable Characteristics," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113140, Verein für Socialpolitik / German Economic Association.
    2. Nabil Annabi & Youssef Boudribila & Simon Harvey, 2013. "Labour supply and income distribution effects of the working income tax benefit: a general equilibrium microsimulation analysis," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-33, December.
    3. Tripathi, Sabyasachi, 2015. "Do upcoming “Smart cities” need to provide smart distribution of higher urban economic growth? Evidence from Urban India," MPRA Paper 61527, University Library of Munich, Germany.
    4. Vito Peragine & Flaviana Palmisano & Paolo Brunori, 2014. "Economic Growth and Equality of Opportunity," World Bank Economic Review, World Bank Group, vol. 28(2), pages 247-281.
    5. Jean-Yves Duclos & Paul Makdissi & Abdelkrim Araar, 2014. "Pro-poor indirect tax reforms, with an application to Mexico," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 21(1), pages 87-118, February.
    6. 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.
    7. Sripad Motiram & Karthikeya Naraparaju, 2013. "Growth and Deprivation in India: What Does Recent Data Say?," Working Papers 287, ECINEQ, Society for the Study of Economic Inequality.
    8. Bibi, Sami & Duclos, Jean-Yves & Verdier-Chouchane, Audrey, 2012. "Assessing absolute and relative pro-poor growth, with an application to selected African countries," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 6, pages 1-43.
    9. Luis Ayala & Antonio Jurado, 2011. "Pro-poor Economic Growth, Inequality and Fiscal Policy: The Case of Spanish Regions," Regional Studies, Taylor & Francis Journals, vol. 45(1), pages 103-121.
    10. repec:hrs:journl:v:ix:y:2017:i:2:p:131-146 is not listed on IDEAS
    11. Sripad Motiram & Karthikeya Naraparaju, 2013. "Growth and Deprivation in India: What Does Recent Data Say?," Working Papers id:5279, eSocialSciences.
    12. Buhong Zheng, 2011. "Consistent comparison of pro-poor growth," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 37(1), pages 61-79, June.
    13. Luis Huesca & Linda Llamas, 2016. "Testing for Pro-Poorness of Growth through the Tax System: The Mexican Case," Journal of Reviews on Global Economics, Lifescience Global, vol. 5, pages 101-115.

    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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