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Is Growth Enough? Macroeconomic Policy and Poverty Reduction

  • Carlos Leite
  • Charalambos G. Tsangarides
  • Dhaneshwar Ghura

The paper investigates the existence of "super pro-poor" policies-that is, policies that directly influence the income of the poor after accounting for the effect of growth. It uses a dynamic panel estimator to capture both across- and within-country effects, and a Bayesian-type robustness check to account for model uncertainty. The findings confirm that growth raises the income of the poor, although this relationship is less than one-to-one. The analysis also identifies four super pro-poor conditions that are influenced by policy: inflation, government size, educational achievement, and financial development.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 02/118.

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Length: 39
Date of creation: 01 Jul 2002
Date of revision:
Handle: RePEc:imf:imfwpa:02/118
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