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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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    References listed on IDEAS

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    Cited by:

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    2. Tomasz Panek, 2019. "Czy wzrost gospodarczy w Polsce w latach 2005 -2015 był korzystny dla ubogich?," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 2, pages 5-39.
    3. Tomasz Panek, 2018. "Wzrost sprzyjaj¹cy ubogim: koncepcje i pomiar dla polski w latach 2005-2015," Working Papers 80, Institute of Statistics and Demography, Warsaw School of Economics.
    4. Elżbieta Sobczak & Bartosz Bartniczak & Andrzej Raszkowski, 2021. "Implementation of the No Poverty Sustainable Development Goal (SDG) in Visegrad Group (V4)," Sustainability, MDPI, Open Access Journal, vol. 13(3), pages 1-21, January.
    5. 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.
    6. 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.
    7. Edwin Fourrier-Nicolai & Michel Lubrano, 2019. "The Effect of Aspirations on Inequality: Evidence from the German Reunification using Bayesian Growth Incidence Curves," AMSE Working Papers 1914, Aix-Marseille School of Economics, France.
    8. 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.
    9. 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.
    10. 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.
    11. Edwin Fourrier-Nicolai & Michel Lubrano, 2021. "Bayesian Inference for Parametric Growth Incidence Curves," AMSE Working Papers 2131, Aix-Marseille School of Economics, France.
    12. Ismael Ahamdanech & Carmelo García-Pérez & Mercedes Prieto-Alaiz, 2020. "A Stochastic Dominance Approach to Evaluating Pro-Poor Growth—An Application to the Spanish Case," Sustainability, MDPI, Open Access Journal, vol. 12(5), pages 1-16, February.
    13. 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.
    14. 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 (2007-2020), Kiel Institute for the World Economy (IfW), vol. 6, pages 1-43.
    15. Luis Ayala & Antonio Jurado, 2011. "Pro-poor Economic Growth, Inequality and Fiscal Policy: The Case of Spanish Regions," Regional Studies, Taylor & Francis Journals, vol. 45(1), pages 103-121.
    16. Sabyasachi TRIPATHI, 2017. "How To Develop An Equitable Distribution Of Urban Gdp By Smart City Development In India," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 131-146, December.
    17. Edwin Fourrier-Nicolai & Michel Lubrano, 2020. "Bayesian Inference for Distributional Changes: The Effect of Western TV on Wage Inequality and Female Participation in Former East Germany," AMSE Working Papers 2027, Aix-Marseille School of Economics, France.
    18. Sripad Motiram & Karthikeya Naraparaju, 2013. "Growth and Deprivation in India: What Does Recent Data Say?," Working Papers id:5279, eSocialSciences.
    19. 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.
    20. Sandhya S. Iyer & K. Seeta Prabhu, 2017. "Economic Growth and Integrated Poverty Index: An Estimate Using Macro-level Aggregates at Subnational Levels in India," Indian Journal of Human Development, , vol. 11(3), pages 289-312, December.
    21. 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.

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    More about this item

    Keywords

    Pro-poor growth; Poverty; Inequality;
    All these keywords.

    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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