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Pro-poor Growth: Concepts and Measurement with Country Case Studies

Author

Listed:
  • Nanak Kakwani

    (International Poverty Center, United Nations Development Programme.)

  • Hyun H. Son

    (Departmetn of Economics, Macquarie University, Sydney, Australia.)

Abstract

This paper looks into the interrelation between economic growth, inequality, and poverty. Using the notion of pro-poor growth, we examine the extent to which the poor benefit from economic growth. First, various approaches to defining and measuring propoor growth are scrutinised using a variety of criteria. It is argued that the satisfaction of a monotonicity axiom is a key criterion for measuring pro-poor growth. The monotonicity axiom sets out a condition that the proportional reduction in poverty is a monotonically increasing function of the pro-poor growth measure. The paper proposes a pro-poor growth measure that satisfies the monotonicity criterion. This measure is called a ‘poverty equivalent growth rate’, which takes into account both the magnitude of growth and how the benefits of growth are distributed to the poor and the non-poor. As the new measure satisfies the criterion of monotonicity, it is indicative that to achieve rapid poverty reduction, the poverty equivalent growth rate—rather than the actual growth rate—ought to be maximised. The methodology developed in the paper is then applied to three Asian countries, namely, the Republic of Korea, Thailand, and Vietnam.

Suggested Citation

  • Nanak Kakwani & Hyun H. Son, 2003. "Pro-poor Growth: Concepts and Measurement with Country Case Studies," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(4), pages 417-444.
  • Handle: RePEc:pid:journl:v:42:y:2003:i:4:p:417-444
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    File URL: http://www.pide.org.pk/pdf/PDR/2003/Volume4/417-444.pdf
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    References listed on IDEAS

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    8. Ram, Rati, 1988. "Economic development and income inequality: Further evidence on the U-curve hypothesis," World Development, Elsevier, vol. 16(11), pages 1371-1376, November.
    9. Ravallion, Martin, 2004. "Pro-poor growth : A primer," Policy Research Working Paper Series 3242, The World Bank.
    10. Anand, Sudhir & Kanbur, S. M. R., 1993. "The Kuznets process and the inequality--development relationship," Journal of Development Economics, Elsevier, vol. 40(1), pages 25-52, February.
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    13. Ahluwalia, Montek S., 1976. "Inequality, poverty and development," Journal of Development Economics, Elsevier, vol. 3(4), pages 307-342, December.
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    Cited by:

    1. B. Essama-Nssah & Peter J. Lambert, 2009. "Measuring Pro-Poorness: A Unifying Approach With New Results," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(3), pages 752-778, September.
    2. Florent Bresson & Jean-Yves Duclos & Flaviana Palmisano, 2015. "Intertemporal pro-poorness," SERIES 03-2015, Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro", revised Jul 2015.
    3. Dorothée Boccanfuso & Luc Savard & Antonio Estache, 2013. "The Distributional Impact of Developed Countries’ Climate Change Policies on Senegal: A Macro-Micro CGE Application," Sustainability, MDPI, Open Access Journal, vol. 5(6), pages 1-24, June.
    4. Hammill, Matthew, 2007. "Growth, poverty and inequality in Central America," Estudios y Perspectivas – Sede Subregional de la CEPAL en México 88, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    5. Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2009. "Distributional impact of developed countries CC policies on Senegal : A macro-micro CGE application," Cahiers de recherche 09-11, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    6. repec:spr:soinre:v:133:y:2017:i:1:d:10.1007_s11205-016-1349-7 is not listed on IDEAS
    7. repec:eee:quaeco:v:64:y:2017:i:c:p:82-93 is not listed on IDEAS

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