Economic growth, inequality and poverty

Author(s): Adams, Richard H

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Abstract This paper uses a new data set of 126 intervals from 60 developing countries to analyze the growth elasticity of poverty, that is, how much does poverty decline in percentage terms with a given percentage rise in economic growth. The data set is both broader in coverage and more selective in terms of quality controls than those used in the past. The study finds that while economic growth does reduce poverty in developing countries, the rate of poverty reduction depends very much on how economic growth is defined. Controlling for changes in income inequality, when economic growth is measured by changes in survey mean income (consumption), the growth elasticity of poverty (excluding Eastern Europe and Central Asia) is -2.79; that is, a 10% increase in the survey mean will reduce poverty ($ 1.00/person/day) by 27.9%. But, when growth is measured by changes in GDP per capita, the growth elasticity of poverty is a statistically insignificant -2.27, which is lower than has previously been estimated. (C) 2004 Elsevier Ltd. All rights reserved.
Publication Title World development
Publisher Elsevier Science
Publication Date 2004
URIs http://www.econis.eu/PPNSET?PPN=475305256
http://www.sciencedirect.com/science/article/pii/S0305750X04001524
http://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcAuth=SerialsSolutions&SrcApp=Summon&KeyUT=000225636000001&DestLinkType=FullRecord&DestApp=WOS
http://search.proquest.com/docview/229622202
Keywords DEVELOPING-COUNTRIES
Developing Countries
Developing countries
ECONOMICS
Econometrics
Economic Development
Economic Development: Human Resources, Human Development, Income Distribution, Migration (O15)
Economic Growth
Economic Theories
Economic analysis
Economic development
Economic growth
Economics
GDP
Gross Domestic Product
Gross domestic product
Growth
Growth elasticity of poverty
Income Inequality
Income distribution
Income inequality
Inequality
LDCs
Measurement
Measurement and Analysis of Poverty (I32)
Measurement of Economic Growth, Aggregate Productivity, Cross-Country Output Convergence (O47)
PLANNING & DEVELOPMENT
Personal Income, Wealth, and Their Distributions (D31)
Poverty
Statistical analysis
Studies
article
economic growth
growth elasticity of poverty
inequality
poverty
poverty, inequality, economic growth, growth elasticity of poverty
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