IDEAS home Printed from https://ideas.repec.org/p/sls/resrep/0306.html
   My bibliography  Save this paper

Productivity Growth and Poverty Reduction in Developing Countries

Author

Listed:
  • Centre for the Study of Living Standards

    ()

Abstract

The United Nations has set as a goal for the world community the halving of the rate of poverty between 1990 and 2015. Previous literature and empirical work provides a strong consensus that growth reduces poverty, and several recent studies have also found that the higher is income inequality within a country the more limited is the impact of growth on reducing poverty. But in dynamic economies most economic growth comes from productivity growth, and few studies have tested the relationships between productivity growth, poverty and inequality. The present study uses several sources of international data on labour productivity, poverty and income inequality, and finds that across the developing countries for which data are available productivity growth plays a substantial role in reducing poverty. This effect is also found to be stronger in countries with relatively low income inequality. Furthermore, productivity growth is found to account for changes in poverty better than the more commonly used economic growth. This conclusion suggests that developing countries, in attempting to reach their poverty reduction objectives, should pursue policies that foster productivity growth. However, a strong social safety net is also required to ensure that the adjustment costs that come with productivity increases do not fall disproportionately on the poor and that all members of society realize the gains from growth.

Suggested Citation

  • Centre for the Study of Living Standards, 2003. "Productivity Growth and Poverty Reduction in Developing Countries," CSLS Research Reports 2003-06, Centre for the Study of Living Standards.
  • Handle: RePEc:sls:resrep:0306
    as

    Download full text from publisher

    File URL: http://www.csls.ca/reports/10-03-05_poverty.pdf
    Download Restriction: no

    File URL: http://www.csls.ca/reports/10-03-05_poverty_tc.pdf
    File Function: Tables and Charts
    Download Restriction: no

    File URL: http://www.csls.ca/reports/10-03-05_poverty_kilm.pdf
    File Function: Appendix 1
    Download Restriction: no

    File URL: http://www.csls.ca/reports/10-03-05_poverty_penn.pdf
    File Function: Appendix 2
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. World Bank, 2012. "Bangladesh - Towards Accelerated, Inclusive and Sustainable Growth : Opportunities and Challenges, Volume 2. Main Report," World Bank Other Operational Studies 12121, The World Bank.
    2. Kathuria, Vinish & Seethamma Natarajan, Rajesh Raj & Sen, Kunal, 2010. "State business relations and manufacturing productivity growth in India," MPRA Paper 20314, University Library of Munich, Germany.

    More about this item

    Keywords

    Productivity; Poverty; Inequality; Productivity Growth; Social Security System; Social Policy; Reform; Economic Reform; Urban; Rural; Developing Countries; Development; Growth; Millenium Development Goals;

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • P17 - Economic Systems - - Capitalist Systems - - - Performance and Prospects
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sls:resrep:0306. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CSLS). General contact details of provider: http://edirc.repec.org/data/cslssca.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.