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When is Economic Growth Pro-Poor? Evidence from Tunisia

  • Sami Bibi

Many empirical studies have shown that economic growth generally leads to a drop in poverty. These studies have also pointed out that a given growth rate is compatible with a large range of outcomes in terms of poverty reduction. This means that growth is more pro-poor in certain cases than in others. Using complete and partial poverty orderings, this paper suggests a measure which captures the extent to which economic growth is pro-poor. This measure decomposes poverty changes into two components: the relative variation in the average income of the poor and the relative variation in the overall inequality within the poor. Evidence from Tunisia shows that economic growth was to a large extent pro-poor during the last two decades.

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Paper provided by CIRPEE in its series Cahiers de recherche with number 0522.

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Date of creation: 2005
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Handle: RePEc:lvl:lacicr:0522
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  1. Duclos, Jean-Yves & Grégoire, Philippe, 1999. "Absolute and Relative Deprivation and the Measurement of Poverty," Cahiers de recherche 9910, Université Laval - Département d'économique.
  2. Bibi, Sami & Duclos, Jean-Yves, 2003. "Decomposing Poverty Changes into Vertical and Horizontal Components," Cahiers de recherche 0312, CIRPEE.
  3. Foster, James E & Shorrocks, Anthony F, 1988. "Poverty Orderings," Econometrica, Econometric Society, vol. 56(1), pages 173-77, January.
  4. Ravallion, M. & Datt, G., 1991. "Growth and Redistribution Components of Changes in Poverty Measures," Papers 83, World Bank - Living Standards Measurement.
  5. Jean-Yves Duclos & Quentin Wodon, 2004. "What is "Pro-Poor"?," Cahiers de recherche 0425, CIRPEE.
  6. Sami Bibi & Jean-Yves Duclos, 2007. "Poverty-decreasing indirect tax reforms: Evidence from Tunisia," International Tax and Public Finance, Springer, vol. 14(2), pages 165-190, April.
  7. Ravallion, Martin & Shaohua Chen, 2001. "Measuring pro-poor growth," Policy Research Working Paper Series 2666, The World Bank.
  8. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
  9. Kraay, Aart, 2006. "When is growth pro-poor? Evidence from a panel of countries," Journal of Development Economics, Elsevier, vol. 80(1), pages 198-227, June.
  10. Bhagwati, Jagdish N., 1988. "Poverty and public policy," World Development, Elsevier, vol. 16(5), pages 539-555, May.
  11. Kakwani, Nanak, 1980. "On a Class of Poverty Measures," Econometrica, Econometric Society, vol. 48(2), pages 437-46, March.
  12. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
  13. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  14. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-64, July.
  15. Bourguignon, Francois & Fields, Gary, 1997. "Discontinuous losses from poverty, generalized P[alpha] measures, and optimal transfers to the poor," Journal of Public Economics, Elsevier, vol. 63(2), pages 155-175, January.
  16. Russell Davidson, 2006. "Stochastic Dominance," Departmental Working Papers 2006-19, McGill University, Department of Economics.
  17. Hagenaars, Aldi J M, 1987. "A Class of Poverty Indices," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 28(3), pages 583-607, October.
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