Growth is Good for the Poor

By David L. Dollar, Aart C. Kraay. 2001

214 citations recorded by the source corpus.

Average incomes of the poorest quintile rise proportionately with average incomes in a sample of 92 countries spanning the last four decades. This is because the share of income of the poorest quintile does not vary systematically with average income. It also does not vary with many of the policies and institutions that explain growth rates of average incomes, nor does it vary with measures of policies intended to benefit the poorest in society. This evidence emphasizes the importance of economic growth for poverty reduction.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/addb562b61fc7b2646b91c8ce3e98e8a7ce1e868

Citations in the corpus

• Finance and Inequality: Theory and Evidence (2009, unknown): “…to conditioning on many country traits and when employing a panel instrumental variable estimator to control for potential endogeneity bias.14 14 Dollar and Kraay (2002) use a highly unbalanced system panel estimator to examine the relationship between the income of the poor, median income, and…”
• A Quality of Growth Index for Developing Countries: A Proposal (2014, unknown): “However, relatively few posted significant declines in poverty, inequality and unemployment (see Dollar and Kraay 2002; Dollar et al. 2013).”
• The Two Faces of Globalization: Against Globalization as We Know it (2003, unknown): “This is the view conveyed implicitly and subliminally by many serious papers and publications as, for example, in the Dollar and Kraay (2000) often-repeated statement that ‘‘the poor and the rich gain one-for-one from openness,’’ 1 or in Sala-i-Martins (2002) derisive statements about inequality a”
• Trade Openness and Economic Growth: A Panel Causality Analysis (2012, unknown): “…to trade is a significant explanatory variable for economic growth (see e.g. some more recent contributions like Dollar (1992), Edwards (1998), Harrison (1996), Barro and Lee (1994), Easterly and Levine (2001), Dollar and Kraay (2002), Irwin and Tervio (2000), Islam (1995), Sala-i-Martin (1997)).”
• Can the Natural Resource Curse Be Turned Into a Blessing? The Role of Trade Policies and Institutions (2007, unknown): “For example, Fasano (2002) documents that the United Arab Emirates have turned the resource curse into a blessing by investing massively in modern infrastructure and education. Also, Acemoglu, Johnson, and Robinson (2003) argue that ethnically homogenous and diamond-rich Botswana is a success story ”
• Growing out of Poverty: Trends and Patterns of Urban Poverty in China 1988–2002 (2008, unknown): “Again, cross-country evidence since 1960 supports this implication (Dollar and Kraay, 2000).”
• When is Growth Pro-Poor? Cross-Country Evidence (2004, unknown): “In the past few years, the term “pro-poor growth” has become pervasive in discussions of development policy.”