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Testing for pro-poorness of growth, with an application to Mexico

Author

Listed:
  • Abdelkrim Araar

    () (CIRPEE, Département d'économie, Université Laval)

  • Jean-Yves Duclos

    () (CIRPEE, Département d'économie, Université Laval)

  • Mathieu Audet

    () (GREDI, Faculte d'administration, Université de Sherbrooke)

  • Paul Makdissi

    () (GREDI, Département d'économique, Université de Sherbrooke)

Abstract

This paper proposes techniques to test for whether growth has been pro-poor. We first review different definitions of pro-poorness and argue for the use of methods that can generate results that are robust over classes of pro-poor measures and ranges of poverty lines. We then provide statistical procedures that rely on the use of sample data to infer whether growth has been pro-poor in a population. We apply these procedures to Mexican household surveys for the years of 1992, 1998 and 2004. We find strong statistical evidence that Mexican growth has been absolutely anti-poor between 1992 and 1998, absolutely pro-poor between 1998 and 2004 and between 1992 and 2004, and relatively pro-poor between 1992 and 2004 and between 1998 and 2004. The relative assessment of the period between 1992 and 1998 is statistically too weak to lead to a robust evaluation of that period.

Suggested Citation

  • Abdelkrim Araar & Jean-Yves Duclos & Mathieu Audet & Paul Makdissi, 2007. "Testing for pro-poorness of growth, with an application to Mexico," Cahiers de recherche 07-07, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
  • Handle: RePEc:shr:wpaper:07-07
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    File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-0707.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. George J. Borjas & Ilpo Kauppinen & Panu Poutvaara, 2015. "Self-Selection of Emigrants: Theory and Evidence on Stochastic Dominance in Observable and Unobservable Characteristics," CESifo Working Paper Series 5567, CESifo Group Munich.
    2. Nabil Annabi & Youssef Boudribila & Simon Harvey, 2013. "Labour supply and income distribution effects of the working income tax benefit: a general equilibrium microsimulation analysis," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-33, December.
    3. Vito Peragine & Flaviana Palmisano & Paolo Brunori, 2014. "Economic Growth and Equality of Opportunity," World Bank Economic Review, World Bank Group, vol. 28(2), pages 247-281.
    4. Sripad Motiram & Karthikeya Naraparaju, 2013. "Growth and Deprivation in India: What Does Recent Data Say?," Working Papers 287, ECINEQ, Society for the Study of Economic Inequality.
    5. Bibi, Sami & Duclos, Jean-Yves & Verdier-Chouchane, Audrey, 2012. "Assessing absolute and relative pro-poor growth, with an application to selected African countries," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 6, pages 1-43.
    6. Jean-Yves Duclos & Paul Makdissi & Abdelkrim Araar, 2014. "Pro-poor indirect tax reforms, with an application to Mexico," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 21(1), pages 87-118, February.
    7. repec:hrs:journl:v:ix:y:2017:i:2:p:131-146 is not listed on IDEAS
    8. Sripad Motiram & Karthikeya Naraparaju, 2013. "Growth and Deprivation in India: What Does Recent Data Say?," Working Papers id:5279, eSocialSciences.
    9. Buhong Zheng, 2011. "Consistent comparison of pro-poor growth," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 37(1), pages 61-79, June.
    10. Luis Huesca & Linda Llamas, 2016. "Testing for Pro-Poorness of Growth through the Tax System: The Mexican Case," Journal of Reviews on Global Economics, Lifescience Global, vol. 5, pages 101-115.
    11. 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.
    12. Tripathi, Sabyasachi, 2013. "Has urban economic growth in Post-Reform India been pro-poor between 1993-94 and 2009-10?," MPRA Paper 52336, University Library of Munich, Germany.

    More about this item

    Keywords

    Pro-poor growth; Poverty; Inequality;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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