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Governance, Growth and Poverty Reduction

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  • Mushtaq H. Khan

Abstract

Poverty reduction is a function of economic growth, income distribution and distribution changes. Governance can impact both growth and income distribution. The dominant market-enhancing governance paradigm seeks to enhance the efficiency of markets through ‘good governance’ reforms, ostensibly to trigger or sustain growth. ‘Pro-poor’ good governance reforms purport to enhance the scale and efficiency of service delivery to the poor. The good governance approach to enhancing growth is disputed. Neither theory nor evidence strongly support the plausibility of significantly reducing poverty through the good governance agenda. Alternative governance approaches for addressing poverty are contrasted favourably with the currently dominant paradigm.

Suggested Citation

  • Mushtaq H. Khan, 2009. "Governance, Growth and Poverty Reduction," Working Papers 75, United Nations, Department of Economics and Social Affairs.
  • Handle: RePEc:une:wpaper:75
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    File URL: http://www.un.org/esa/desa/papers/2009/wp75_2009.pdf
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    References listed on IDEAS

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    1. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," World Bank Economic Review, World Bank Group, vol. 10(3), pages 565-591, September.
    2. Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, vol. 57(2), pages 259-287.
    3. Alberto Alesina & Dani Rodrik, 1994. "Distributive Politics and Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 109(2), pages 465-490.
    4. Li, Hongyi & Zou, Heng-fu, 1998. "Income Inequality Is Not Harmful for Growth: Theory and Evidence," Review of Development Economics, Wiley Blackwell, vol. 2(3), pages 318-334, October.
    5. Martin Ravallion, 2008. "Global Poverty Reassessed: A Reply to Reddy," One Pager 66, International Policy Centre for Inclusive Growth.
    6. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June.
    7. Kristin J. Forbes, 2000. "A Reassessment of the Relationship between Inequality and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 869-887, September.
    8. Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April.
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    Citations

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    Cited by:

    1. Tabthip Kraipornsak, 2014. "Good Governance and Successful Development: Cross Countries Investigation," Eurasian Journal of Business and Management, Eurasian Publications, vol. 2(1), pages 46-54.
    2. AKPOILIH, Roland & FARAYIBI, Adesoji, 2012. "Economic Growth and Inequality in Nigeria: Magnitudes and Challenges," MPRA Paper 74156, University Library of Munich, Germany.
    3. Lawrence Sáez, 2013. "Methods in governance research: a review of research approaches," Brooks World Poverty Institute Working Paper Series esid-017-13, BWPI, The University of Manchester.
    4. repec:ksp:journ5:v:4:y:2017:i:4:p:451-472 is not listed on IDEAS
    5. repec:eco:journ1:2017-05-12 is not listed on IDEAS
    6. Dawood MAMMON & Huma RABBANI, 2017. "Effect of welfare and economic performance on good governance outcomes in Pakistan," Journal of Economics Library, KSP Journals, vol. 4(4), pages 451-472, December.

    More about this item

    Keywords

    Governance; growth; income distribution; poverty;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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