Role of Growth and Inequality in Explaining Changes in Poverty in Pakistan
Changes in the extent of poverty are affected not only by growth in the mean income but also by changes in the distribution of income. The effect of these two factors can be separately measured by decomposing the total change in poverty. In this context, this paper uses new tools to quantify relative contribution of growth and inequality using the latest available household survey data. The findings of this paper suggest that the role of inequality remained important in mitigating the adverse effects of growth on poverty during the first period, 1998-99 to 2001-02. Alternatively, the role of growth has been fundamental in reducing absolute poverty in the second period, 2001-02 to 2004-05. Poverty would have been further reduced, had the distribution not worsened during this period. The policy implication is that while pursuit of growth as a strategy is important for poverty reduction in Pakistan, the contribution of redistribution in favour of the poor should not be ignored if the effect of growth on poverty reduction is to be enhanced. Thus, the major challenge is to pursue a poverty reduction strategy that is based on growth with redistribution.
Volume (Year): 49 (2010)
Issue (Month): 1 ()
|Contact details of provider:|| Postal: P.O.Box 1091, Islamabad-44000|
Web page: http://www.pide.org.pk
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April.
- repec:pid:journl:v:36:y:1997:i:1:p:39-68 is not listed on IDEAS
- repec:pid:journl:v:39:y:2000:i:4:p:1089-1110 is not listed on IDEAS
- repec:pid:journl:v:33:y:1994:i:4:p:935-952 is not listed on IDEAS
- repec:pid:journl:v:12:y:1973:i:4:p:317-360 is not listed on IDEAS
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
- repec:pid:journl:v:28:y:1989:i:4:p:831-850 is not listed on IDEAS
- repec:pid:journl:v:35:y:1996:i:4:p:911-926 is not listed on IDEAS
- repec:pid:journl:v:7:y:1967:i:2:p:160-212 is not listed on IDEAS
- Mohammad, Irfan & Amjad, Rashid, 1994. "Poverty in rural Pakistan," MPRA Paper 38335, University Library of Munich, Germany.
- repec:pid:journl:v:23:y:1984:i:2-3:p:365-379 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:49:y:2010:i:1:p:1-17. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Khurram Iqbal)
If references are entirely missing, you can add them using this form.