When is Growth Pro-Poor? Cross-Country Evidence

By Aart C. Kraay. Social Science Research Network, 2004

250 citations recorded by the source corpus.

Growth is pro-poor if the poverty measure of interest falls. This implies three potential sources of pro-poor growth: (a) a high rate of growth of average incomes; (b) a high sensitivity of poverty to growth in average incomes; and (c) a poverty-reducing pattern of growth in relative incomes. I empirically decompose changes in poverty in a large sample of developing countries into these components. In the medium run, most of the variation in changes in poverty is due to growth, suggesting that policies and institutions that promote broad-based growth should be central to pro-poor growth. Most of the remainder is due to poverty-reducing patterns of growth in relative incomes, rather than differences in the sensitivity of poverty to growth in average incomes. Cross-country evidence provides little guidance on policies and institutions that promote these other sources of pro-poor growth.

Subfields: Economics and Econometrics, Safety Research, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/f6470eb6f88a199cd1eee6a073dd08a0e7610279

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. N. Kakwani
2. J. H. López
3. William F. Maloney
4. R. Anand
5. Saurabh Mishra
6. Hyun H. Son
7. S. Peiris
8. S. Holmberg

In Safety Research

1. S. Peiris
2. R. Anand
3. Saurabh Mishra
4. G. Perry
5. Hyun H. Son
6. William F. Maloney
7. J. H. López
8. O. Arias

In Sociology and Political Science

1. N. Kakwani
2. Bo Rothstein
3. S. Holmberg
4. S. Peiris
5. R. Anand
6. Saurabh Mishra
7. Hyun H. Son
8. G. Perry

Citations in the corpus

• Poverty Reduction and Growth: Virtuous and Vicious Circles (2006, methodology): “Source: Authors’ calculations using data from Kaufman, Kraay, and Mastruzzi (2004).”
• The impact of foreign aid on economic growth in ECOWAS countries: A simultaneous-equation model (2013, unknown): “Advancing reasons in support of a longer time horizon, Kraay (2004) and Wacziarg and Welsh (2003) point out that 3 Among others, Burnside et al. (2000), Obstfeld (1999), Lensink and White (1999), Durbarry et al. (1998), and Hadjimichael et al. (1995).”
• Inclusive Growth: Measurement and Determinants (2013, background): “Rapid pace of growth is unquestionably necessary for substantial poverty reduction (see Kraay 2004, and Lopez and Servén, 2004), but for this growth to be sustainable in the long run, it should be broad-based across sectors and equitable (see Berg and Ostry, 2011a).”
• Inclusive Growth Analytics: Framework and Application (2009, unknown): “In a frequently cited cross-country study, Kraay (2004) shows that growth in average incomes explains 70 percent of the variation in poverty reduction (as measured by the headcount ratio) in the short run, and as much as 97 percent in the long run.”
• Poverty Equivalent Growth Rate (2008, methodology): “Kraay (2004) estimated the growth and inequality effects using Datt and Ravallion’s (1992) poverty decomposition, which consists of three components: growth component, inequality component and a residual term.”
• Quality of Government: What You Get (2009, background): “The 59 Kraay (2004) p. 20 20 corruption literature makes similar inferences on the link between QoG and poverty.”