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Reducing Poverty and Inequality in India: Has Liberalization Helped?

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Abstract

This study examines the empirical relationship among inequality, poverty and economic growth in India. Using data on consumption from the 13th to the 53rd Rounds of the National Sample Survey, the author computes, for both rural and urban sectors, the Gini coefficient and three popular measures of poverty.

Suggested Citation

  • Jha,R., 2000. "Reducing Poverty and Inequality in India: Has Liberalization Helped?," Research Paper 204, World Institute for Development Economics Research.
  • Handle: RePEc:fth:wodeec:204
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    1. Villasenor, JoseA. & Arnold, Barry C., 1989. "Elliptical Lorenz curves," Journal of Econometrics, Elsevier, vol. 40(2), pages 327-338, February.
    2. Alesina, Alberto & Perotti, Roberto, 1996. "Income distribution, political instability, and investment," European Economic Review, Elsevier, vol. 40(6), pages 1203-1228, June.
    3. Subramanian, Shankar & Deaton, Angus, 1996. "The Demand for Food and Calories," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 133-162, February.
    4. Persson, Torsten & Tabellini, Guido, 1991. "Is Inequality Harmful for Growth? Theory and Evidence," CEPR Discussion Papers 581, C.E.P.R. Discussion Papers.
    5. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    6. Datt, Gaurav & Ravallion, Martin, 1997. "Macroeconomic Crises and Poverty Monitoring: A Case Study for India," Review of Development Economics, Wiley Blackwell, vol. 1(2), pages 135-152, June.
    7. Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," World Bank Economic Review, World Bank Group, vol. 10(1), pages 1-25, January.
    8. 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.
    9. Ravallion, Martin & Datt, Gaurav, 1999. "When is growth pro-poor? Evidence from the diverse experiences of India's states," Policy Research Working Paper Series 2263, The World Bank.
    10. Angus Deaton & Christina Paxson, 1998. "Economies of Scale, Household Size, and the Demand for Food," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 897-930, October.
    11. Boyle, G E & McCarthy, T G, 1997. "A Simple Measure of Beta-Convergence," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 59(2), pages 257-264, May.
    12. Kakwani, Nanak, 1980. "On a Class of Poverty Measures," Econometrica, Econometric Society, vol. 48(2), pages 437-446, March.
    13. Li, Hongyi & Squire, Lyn & Zou, Heng-fu, 1998. "Explaining International and Intertemporal Variations in Income Inequality," Economic Journal, Royal Economic Society, vol. 108(446), pages 26-43, January.
    14. Satya PAUL, 1998. "The Performance Of The Integrated Rural Development Program In India: An Assessment," The Developing Economies, Institute of Developing Economies, vol. 36(2), pages 117-131, June.
    15. Ferreira, Francisco & Prennushi, Giovanna & Ravallion, Martin, 1999. "Protecting the poor from macroeconomic shocks," Policy Research Working Paper Series 2160, The World Bank.
    16. Boadway, Robin & Horiba, Isao & Jha, Raghbendra, 1999. "The Provision of Public Services by Government Funded Decentralized Agencies," Public Choice, Springer, vol. 100(3-4), pages 157-184, September.
    17. Ravallion, Martin, 1998. "Does aggregation hide the harmful effects of inequality on growth?," Economics Letters, Elsevier, vol. 61(1), pages 73-77, October.
    18. Mundle, S. & Tulasidhar, V.B., 1998. "Adjustment and Distribution: The Indian Experience," Papers 17, Asian Development Bank.
    19. Evans, Paul & Karras, Georgios, 1996. "Convergence revisited," Journal of Monetary Economics, Elsevier, vol. 37(2-3), pages 249-265, April.
    20. Bruno, Michael & Ravallion, Martin & Squire, Lyn, 1996. "Equity and growth in developing countries : old and new perspectives on the policy issues," Policy Research Working Paper Series 1563, The World Bank.
    21. Howes, Stephen & Lanjouw, Jean Olson, 1998. "Does Sample Design Matter for Poverty Rate Comparisons?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(1), pages 99-109, March.
    22. Datt, Gaurav & Ravallion, Martin, 1998. "Why Have Some Indian States Done Better Than Others at Reducing Rural Poverty?," Economica, London School of Economics and Political Science, vol. 65(257), pages 17-38, February.
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    Citations

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    Cited by:

    1. Baliamoune-Lutz, Mina & Lutz, Stefan H., 2004. "Rural-urban inequality in Africa: A panel study of the effects of trade liberalization and financial deepening," ZEI Working Papers B 06-2004, University of Bonn, ZEI - Center for European Integration Studies.
    2. Raghbendra Jha & Bagala Biswal & Urvashi D. Biswal, 2001. "An Empirical Analysis of the Impact of Public Expenditures on Education and Health on Poverty in Indian States," ASARC Working Papers 2001-05, The Australian National University, Australia South Asia Research Centre.
    3. Singh, Nirvikar, 2005. "The Idea of South Asia and the Role of the Middle Class," Santa Cruz Center for International Economics, Working Paper Series qt3868p628, Center for International Economics, UC Santa Cruz.
    4. Tripathi, Sabyasachi, 2015. "Do upcoming “Smart cities” need to provide smart distribution of higher urban economic growth? Evidence from Urban India," MPRA Paper 61527, University Library of Munich, Germany.
    5. repec:kqi:journl:2018-2-1-2 is not listed on IDEAS
    6. 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.
    7. Shashanka Bhide & Nidhi Dhamija, 2010. "Dynamics of Chronic Poverty: Variations in Factors Influencing Entry and Exit of the Chronic Poor," Working Papers id:2950, eSocialSciences.
    8. Gulati, Ashok & Fan, Shenggen & Dalafi, Sara, 2005. "The dragon and the elephant," DSGD discussion papers 22, International Food Policy Research Institute (IFPRI).
    9. Heshmati, Almas, 2004. "Regional Income Inequality in Selected Large Countries," IZA Discussion Papers 1307, Institute for the Study of Labor (IZA).
    10. Ashwini Deshpande, 2007. "Overlapping Identities under Liberalization: Gender and Caste in India," Economic Development and Cultural Change, University of Chicago Press, vol. 55, pages 735-760.
    11. repec:hrs:journl:v:ix:y:2017:i:2:p:131-146 is not listed on IDEAS
    12. Bhattacharya, Haimanti & Innes, Robert, 2006. "Is There a Nexus between Poverty and Environment in Rural India?," 2006 Annual meeting, July 23-26, Long Beach, CA 21201, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Tripathi, Sabyasachi, 2016. "Source of Inequality in consumption Expenditure in India: A Regression Based Inequality Decomposition Analysis," MPRA Paper 72117, University Library of Munich, Germany.
    14. Raghbendra Jha, 2001. "The Challenge of Fiscal Reform in India," ASARC Working Papers 2001-11, The Australian National University, Australia South Asia Research Centre.
    15. Nachane, Dilip M., 2010. "Liberalization, globalization and the dynamics of democracy in India," LSE Research Online Documents on Economics 38356, London School of Economics and Political Science, LSE Library.
    16. Raghbendra Jha, 2002. "Rural Poverty in India: Structure, determinants and suggestions for policy reform," ASARC Working Papers 2002-07, The Australian National University, Australia South Asia Research Centre.

    More about this item

    Keywords

    POVERTY ; ECONOMIC GROWTH ; CONSUMPTION;

    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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