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Economic Growth and Poverty Reduction: Measurement Issues using Income and Non-Income Indicators

  • Klasen, Stephan

Summary This paper first reviews the debate on the definition of pro-poor growth and argues that a relative definition has merits when defining the state of pro-poor growth, while an absolute definition is most suitable when analyzing the rate of pro-poor growth. The second contribution is to extend the pro-poor growth toolbox to non-income indicators. The analysis, applied to Bolivia, shows that this extension greatly improves our understanding of the distribution of change in non-income indicators, of the linkages between progress in income and non-income dimensions of poverty, and on the incidence of progress in non-income outcomes along the income distribution.

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Article provided by Elsevier in its journal World Development.

Volume (Year): 36 (2008)
Issue (Month): 3 (March)
Pages: 420-445

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Handle: RePEc:eee:wdevel:v:36:y:2008:i:3:p:420-445
Contact details of provider: Web page: http://www.elsevier.com/locate/worlddev

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  1. Klasen, Stephan, 2006. "Poverty, Undernutrition, and Child Mortality: Some Inter-Regional Puzzles and their Implications for Research and Policy," IZA Discussion Papers 2509, Institute for the Study of Labor (IZA).
  2. Ravallion, Martin, 2005. "A poverty-inequality trade-off?," Policy Research Working Paper Series 3579, The World Bank.
  3. Banerjee, Abhijit V & Duflo, Esther, 2003. " Inequality and Growth: What Can the Data Say?," Journal of Economic Growth, Springer, vol. 8(3), pages 267-99, September.
  4. Kakwani, N., 1993. "Performance in living standards : An international comparison," Journal of Development Economics, Elsevier, vol. 41(2), pages 307-336, August.
  5. Gaurav Datt & Martin Ravallion, 2002. "Is India's Economic Growth Leaving the Poor Behind?," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 89-108, Summer.
  6. Stephan Klasen, 2003. "In Search of The Holy Grail: How to Achieve Pro-Poor Growth ?," Ibero America Institute for Econ. Research (IAI) Discussion Papers 096, Ibero-America Institute for Economic Research.
  7. Barro, Robert J, 2000. " Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
  8. Jean-Yves Duclos & Quentin Wodon, 2004. "What is "Pro-Poor"?," Cahiers de recherche 0425, CIRPEE.
  9. Ravallion, Martin & Shaohua Chen, 2001. "Measuring pro-poor growth," Policy Research Working Paper Series 2666, The World Bank.
  10. Mattias Lundberg & Lyn Squire, 2003. "The simultaneous evolution of growth and inequality," Economic Journal, Royal Economic Society, vol. 113(487), pages 326-344, 04.
  11. Stephen Knowles & Paula K. Lorgelly, 2002. "Are educational gender gaps a brake on economic development? Some cross-country empirical evidence," Oxford Economic Papers, Oxford University Press, vol. 54(1), pages 118-149, January.
  12. Klasen, Stephan & Harttgen, Kenneth & Grosse, Melanie, 2005. "Measuring Pro-Poor Growth with Non-Income Indicators," Proceedings of the German Development Economics Conference, Kiel 2005 22, Verein für Socialpolitik, Research Committee Development Economics.
  13. Klasen, Stephan & Günther, Isabel, 2007. "Measuring Chronic Non-Income Poverty," Proceedings of the German Development Economics Conference, Göttingen 2007 10, Verein für Socialpolitik, Research Committee Development Economics.
  14. Basu, Kaushik & Foster, James E, 1998. "On Measuring Literacy," Economic Journal, Royal Economic Society, vol. 108(451), pages 1733-49, November.
  15. Ravallion, Martin & Datt, Gaurav, 2002. "Why has economic growth been more pro-poor in some states of India than others?," Journal of Development Economics, Elsevier, vol. 68(2), pages 381-400, August.
  16. Michael Grimm, 2005. "Removing the anonymity axiom in assessing pro-poor growth," Ibero America Institute for Econ. Research (IAI) Discussion Papers 113, Ibero-America Institute for Economic Research.
  17. Klasen, Stephan, 2000. "Measuring Poverty and Deprivation in South Africa," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(1), pages 33-58, March.
  18. Ravallion, Martin, 2001. "Growth, inequality, and poverty : looking beyond averages," Policy Research Working Paper Series 2558, The World Bank.
  19. Stephan Klasen, 2006. "Pro-Poor Growth and Gender Inequality," Ibero America Institute for Econ. Research (IAI) Discussion Papers 151, Ibero-America Institute for Economic Research.
  20. Ravallion, Martin & Shaohua Chen, 2004. "China's (uneven) progress against poverty," Policy Research Working Paper Series 3408, The World Bank.
  21. Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, vol. 57(2), pages 259-287.
  22. Chun-Hung Lin, 2007. "Education Expansion, Educational Inequality, and Income Inequality: Evidence from Taiwan, 1976–2003," Social Indicators Research, Springer, vol. 80(3), pages 601-615, February.
  23. Kraay, Aart, 2006. "When is growth pro-poor? Evidence from a panel of countries," Journal of Development Economics, Elsevier, vol. 80(1), pages 198-227, June.
  24. Stephan Klasen & Mark Misselhorn, 2008. "Determinants of the Growth Semi-Elasticity of Poverty Reduction," Ibero America Institute for Econ. Research (IAI) Discussion Papers 176, Ibero-America Institute for Economic Research.
  25. Dollar, David & Kraay, Aart, 2002. " Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
  26. Melanie Grosse & Stephan Klasen & Julius Spatz, 2005. "Creating National Poverty Profiles and Growth Incidence Curves with Incomplete Income or Consumption Expenditure Data: An Application to Bolivia," Ibero America Institute for Econ. Research (IAI) Discussion Papers 129, Ibero-America Institute for Economic Research.
  27. Grosse, Melanie & Harttgen, Kenneth & Klasen, Stephan, 2006. "Measuring Pro-Poor Progress towards the Non-Income Millennium Development Goals," Working Paper Series RP2006/38, World Institute for Development Economic Research (UNU-WIDER).
  28. Kakwani, Nanak & Son, Hyun H., 2006. "Pro-Poor Growth: The Asian Experience," Working Paper Series RP2006/56, World Institute for Development Economic Research (UNU-WIDER).
  29. Kristin J. Forbes, 2000. "A Reassessment of the Relationship between Inequality and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 869-887, September.
  30. Stephan Klasen & Melanie Grosse & Rainer Thiele & Jann Lay & Julius Spatz & Manfred Wiebelt, 2004. "Operationalizing Pro-Poor Growth - Country Case Study: Bolivia," Ibero America Institute for Econ. Research (IAI) Discussion Papers 101, Ibero-America Institute for Economic Research.
  31. Son, Hyun Hwa, 2004. "A note on pro-poor growth," Economics Letters, Elsevier, vol. 82(3), pages 307-314, March.
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