IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Productivity Growth and Poverty Reduction in Developing Countries

  • Centre for the Study of Living Standards

    ()

Registered author(s):

    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.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    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

    Paper provided by Centre for the Study of Living Standards in its series CSLS Research Reports with number 2003-06.

    as
    in new window

    Length:
    Date of creation: Sep 2003
    Date of revision:
    Handle: RePEc:sls:resrep:0306
    Contact details of provider: Postal: 151 Slater Street, Suite 710, Ottawa, ON K1P 5H3
    Phone: 613-233-8891
    Fax: 613-233-8250
    Web page: http://www.csls.ca/
    Email:


    More information through EDIRC

    Order Information: Web: http://www.csls.ca

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    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: (Whitney Hamilton)

    The email address of this maintainer does not seem to be valid anymore. Please ask Whitney Hamilton to update the entry or send us the correct address

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.