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Poverty Reduction Through Economic Growth: Some Issues

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  • ANDREW MCKAY

    (CREDIT and Department of Economics, University of Nottingham, UK)

Abstract

In broad terms, reduction in poverty can come about through redistributions among households at an existing level of average income, or through growth in average incomes, or through a combination of the two. However, both theoretical and empirical considerations suggest that growth of average household incomes is likely to be necessary to achieve sustained long-term poverty reductions. But the pattern of this growth is important; clearly a growth pattern where the benefits accrue disproportionately to the richest in a society will have less poverty impact than one where the benefits are equally distributed or biased towards the poor. This is likely to be particularly important in countries where growth is likely to be slow. This paper reflects on the relationship between growth in household incomes, inequality and poverty. © 1997 by John Wiley & Sons, Ltd.

Suggested Citation

  • Andrew Mckay, 1997. "Poverty Reduction Through Economic Growth: Some Issues," Journal of International Development, John Wiley & Sons, Ltd., vol. 9(4), pages 665-673.
  • Handle: RePEc:wly:jintdv:v:9:y:1997:i:4:p:665-673
    DOI: 10.1002/(SICI)1099-1328(199706)9:4<665::AID-JID475>3.0.CO;2-P
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    References listed on IDEAS

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    1. Lipton, Michael & Ravallion, Martin, 1995. "Poverty and policy," Handbook of Development Economics,in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 41, pages 2551-2657 Elsevier.
    2. Oded Galor & Joseph Zeira, 1993. "Income Distribution and Macroeconomics," Review of Economic Studies, Oxford University Press, vol. 60(1), pages 35-52.
    3. Ravallion, Martin & Huppi, Monika, 1991. "Measuring Changes in Poverty: A Methodological Case Study of Indonesia during an Adjustment Period," World Bank Economic Review, World Bank Group, vol. 5(1), pages 57-82, January.
    4. Aghion, Philippe & Bolton, Patrick, 1992. "Distribution and growth in models of imperfect capital markets," European Economic Review, Elsevier, vol. 36(2-3), pages 603-611, April.
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    Cited by:

    1. Sasa Obradovic & Boris Siljkovic, 2012. "Social and Economic Measures for Reduction of Unemployment in Serbia and Their Effects on Poverty and Level of Development," Book Chapters, Institute of Economic Sciences.
    2. Zaman, Khalid & Khilji, Bashir Ahmad, 2013. "The relationship between growth and poverty in forecasting framework: Pakistan's future in the year 2035," Economic Modelling, Elsevier, vol. 30(C), pages 468-491.
    3. Boniface Ngah Epo & Francis Menjo Baye & Nadine Teme Angele Manga, 2011. "Spatial and Inter-temporal Sources of Poverty, Inequality and Gender Disparities in Cameroon: a Regression-Based Decomposition Analysis," Working Papers PMMA 2011-15, PEP-PMMA.
    4. Epo, Boniface Ngah & Baye, Francis Menjo, 2007. "Poverty Reduction in Cameroon, 1996-2001: The Role of Growth and Income Redistribution," MPRA Paper 10124, University Library of Munich, Germany.
    5. Jude Okechukwu Chukwu, 2017. "Estimating Inequality Semi-elasticity of Poverty Reduction in Nigeria," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 131(3), pages 1087-1101, April.

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