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Why Growth and Redistribution Matter for Poverty Reduction: Evidence from Sri Lanka on the Elusive Quest for Pro‐Poor Growth

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  • Indunil De Silva

Abstract

This paper decomposes changes in poverty into growth and redistribution components and employs several pro‐poor growth concepts to explore the growth, poverty and inequality nexus in Sri Lanka over the period 1990–2010. We find a ‘trickle‐down’ situation, in which the poor have received proportionately less benefits from growth than the non‐poor. All pro‐poor measures suggest that economic growth in Sri Lanka was particularly beneficial for those located at the top of the distribution. Regression‐based decompositions suggest that variation in expenditure by education characteristics that persist after controlling for other factors to account for around two‐fifths of total household expenditure inequality. Copyright © 2015 John Wiley & Sons, Ltd.

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  • Indunil De Silva, 2016. "Why Growth and Redistribution Matter for Poverty Reduction: Evidence from Sri Lanka on the Elusive Quest for Pro‐Poor Growth," Journal of International Development, John Wiley & Sons, Ltd., vol. 28(8), pages 1272-1293, November.
  • Handle: RePEc:wly:jintdv:v:28:y:2016:i:8:p:1272-1293
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