IDEAS home Printed from https://ideas.repec.org/p/uto/dipeco/200705.html
   My bibliography  Save this paper

A Structural Analysis of Growth and Poverty in the Short-Term

Author

Abstract

"Growth is good for the poor" is a ubíquítous statement and one generally backed by theory, research and history. In the long-run, growth reduces poverty. Yet, growth in output - per se - ís neíther a necessary nor a sutficíent condítíon for poverty reductíon, especíally in the short-term And the short-term matters a great deal to tbc poor. `Che paper uses a number of parametric, non-parametric and decomposition methodologies to assess regional changes in output, income, poverty and inequality in one transition economy which experienced fast growth and fast poverty reductìon over a short period of time. Tbc purpose is to test what is behind this simple covariance that led observers to conclude that output growth deternined poverty reduction. Combining macro e micro regional data, we find a very small trickle down effect of output growth on household incomes and no evidence that output growth is correlated with poverty reduction. We find ínstead that a modest growth in household íncome combined with a pro-poor distribution of such growth explains well poverty reduction. Effective shorterm poverty reductíon polícies should focus on pro-poor actions where pro-poor means making sure that marginal changes among the incomes of the poor outperform marginaI changes among theincomes of the rich.

Suggested Citation

  • Verme Paolo, 2007. "A Structural Analysis of Growth and Poverty in the Short-Term," Department of Economics and Statistics Cognetti de Martiis. Working Papers 200705, University of Turin.
  • Handle: RePEc:uto:dipeco:200705
    as

    Download full text from publisher

    File URL: http://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2007dip/5_wp_verme.pdf
    Download Restriction: no

    Other versions of this item:

    Citations

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


    Cited by:

    1. Bergh, Andreas & Nilsson, Therese, 2014. "Is Globalization Reducing Absolute Poverty?," World Development, Elsevier, vol. 62(C), pages 42-61.
    2. Bergh, Andreas & Nilsson, Therese, 2011. "Globalization and Absolute Poverty – A Panel Data Study," Working Paper Series 862, Research Institute of Industrial Economics.
    3. Brück, Tilman & Esenaliev, Damir & Kroeger, Antje & Kudebayeva, Alma & Mirkasimov, Bakhrom & Steiner, Susan, 2014. "Household survey data for research on well-being and behavior in Central Asia," Journal of Comparative Economics, Elsevier, vol. 42(3), pages 819-835.
    4. Mario D. TELLO, 2015. "Poverty, Growth, Structural Change and Social Inclusion Programs: A Regional Analysis of Peru," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 15(2), pages 59-74.
    5. Verme, Paolo, 2009. "Happiness, Deprivation and the Alter Ego," IRISS Working Paper Series 2009-18, IRISS at CEPS/INSTEAD.

    More about this item

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • P2 - Economic Systems - - Socialist Systems and Transition Economies

    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:uto:dipeco:200705. 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: (Piero Cavaleri) or (Marina Grazioli). General contact details of provider: http://edirc.repec.org/data/detorit.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.