Why Growth and Redistribution Matter for Poverty Reduction: Evidence from Sri Lanka on the Elusive Quest for Pro-Poor Growth

2015 ◽  
Vol 28 (8) ◽  
pp. 1272-1293 ◽  
Author(s):  
Indunil De Silva
Keyword(s):  
Sri Lanka ◽  
Poverty Reduction ◽  
Poor Growth

scholarly journals Spatial Dimensions of Economic Growth, Redistribution, and Poverty Reduction During the Yudhoyono Period in Indonesia

2020 ◽  
Vol 2 (1) ◽  
Author(s):  
Witri Mukti Aji
Keyword(s):  
Economic Growth ◽  
Regional Differences ◽  
Decomposition Method ◽  
Poverty Reduction ◽  
Growth Index ◽  
Growth Indices ◽  
Poor Growth ◽  
Household Expenditures ◽  
Spatial Dimensions ◽  
Capital Development

This research explores the spatial dimensions of economic growth, redistribution, and poverty reduction in Indonesia during the Susilo Bambang Yudhoyono period (i.e., from 2004 to 2014) using the poverty decomposition method, the growth incidence curve, and several pro-poor growth indices. I gathered my data from the annual National Socio-economic Surveys conducted in Indonesia between 2004 and 2014. Analyzing this data, my thesis presents three key economic insights about the Susilo Bambang Yudhoyono period:1) poverty incidence significantly declined between 2004 and 2014, 2) the economic growth that occurred during this period was generally not pro-poor, made evident by an upward sloping growth incidence curve, and 3) regional differences exist in the shape of the growth incidence curve; the pro-poorness of economic growth therefore varies between provinces. Using the classification system proposed by Kakwani and Pernia (2000), I classify provinces into the following five groups with respect to their pro-poor growth index (PPGI). Our empirical results support the pro-poor growth in a nation. However, some provinces such as North Maluku, Gorontalo and Bengkulu experienced non-pro-poor growth and weakly pro-poor. To promote the pro-poor growth in all provinces, the governmental supports in infrastructure and human capital development are essential for the above lagged provinces. Keywords: Household Expenditures; Economic Growth; Redistribution; Poverty Reduction; Spatial Dimensions; Inequality; Poverty Decomposition Method; Growth Incidence Curve; Pro-Poor Growth Indices.

scholarly journals Pro-poor Growth: Concepts and Measurement with Country Case Studies (Distinguished Lecture)

2003 ◽  
Vol 42 (4I) ◽  
pp. 417-444 ◽  
Author(s):  
Nanak Kakwani ◽  
Hyun H. Son
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Poverty Reduction ◽  
Poor Growth ◽  
The Poor ◽  
Actual Growth Rate ◽  
Actual Growth ◽  
The Republic ◽  
Increasing Function ◽  
Proportional Reduction

This paper looks into the interrelation between economic growth, inequality, and poverty. Using the notion of pro-poor growth, we examine the extent to which the poor benefit from economic growth. First, various approaches to defining and measuring propoor growth are scrutinised using a variety of criteria. It is argued that the satisfaction of a monotonicity axiom is a key criterion for measuring pro-poor growth. The monotonicity axiom sets out a condition that the proportional reduction in poverty is a monotonically increasing function of the pro-poor growth measure. The paper proposes a pro-poor growth measure that satisfies the monotonicity criterion. This measure is called a ‘poverty equivalent growth rate’, which takes into account both the magnitude of growth and how the benefits of growth are distributed to the poor and the non-poor. As the new measure satisfies the criterion of monotonicity, it is indicative that to achieve rapid poverty reduction, the poverty equivalent growth rate—rather than the actual growth rate—ought to be maximised. The methodology developed in the paper is then applied to three Asian countries, namely, the Republic of Korea, Thailand, and Vietnam.

scholarly journals Where does Pro-Poor Growth Occur in Vietnam?

2015 ◽  
Vol 22 (1) ◽  
pp. 20-41
Author(s):  
Bao Nguyen Hoang
Keyword(s):  
Economic Growth ◽  
Gini Coefficient ◽  
Poverty Alleviation ◽  
Poverty Reduction ◽  
Equation System ◽  
Simultaneous Equation ◽  
Poverty Index ◽  
Poor Growth ◽  
Simultaneous Equation System ◽  
The Impact

Although Vietnam’s economic growth and poverty reduction for almost three decades have been remarkable, growth for poverty reduction is unequally distributed across the nation. The paper examines the cause of poverty and the impact of provincial economic growth on poverty alleviation, using the data of 63 provinces in Vietnam. The elasticity of poverty with respect to provincial economic growth is employed (the elasticities of headcount index, poverty gap index, and squared poverty index with respect to provincial economic growth) to identify the provinces where pro-poor growth has occurred. The elasticity of poverty with respect to provincial Gini coefficient is examined to identify the impact of expenditure inequality on poverty. The simultaneous equation system is estimated to analyze not only direct and indirect effects of the related variables, but also the causality effect between economic growth and the poverty elasticity with respect to both growth and the Gini coefficient.

scholarly journals A Stochastic Dominance Approach to Evaluating Pro-Poor Growth—An Application to the Spanish Case

2020 ◽  
Vol 12 (5) ◽  
pp. 1728 ◽  
Author(s):  
Ismael Ahamdanech ◽  
Carmelo García-Pérez ◽  
Mercedes Prieto-Alaiz
Keyword(s):  
Economic Growth ◽  
Stochastic Dominance ◽  
Poverty Reduction ◽  
Statistical Tests ◽  
Regional Growth ◽  
Growth Effect ◽  
Poor Growth ◽  
The Great Recession ◽  
Income Data ◽  
The Difference

In this paper, we analyze, in a novel way, the nature of economic growth in Spain after the Great Recession, in relation to its effect on poverty reduction. We use a statistical test to analyze the pro-poorness nature of economic growth using a stochastic dominance approach, not used in this context so far. We decompose changes in the difference in generalized Lorenz ordinates into a growth effect and an inequality effect and apply this to formal Spanish income data statistical tests based on dominance methods. We found that growth was pro-poor in Spain as a whole between 2013 and 2017. As regards regional growth effects, we conclude that growth was weakly pro-poor in seven of Spain’s 17 regions, it was neither pro-poor nor anti-poor in nine regions, and only weakly anti-poor in one region.

Pro-poor Growth and Policies: The Asian Experience (The Quaid-i-Azam Memorial Lecture)

2003 ◽  
Vol 42 (4I) ◽  
pp. 313-348
Author(s):  
Hafiz A. Carstens ◽  
T. Palanivel
Keyword(s):  
Poverty Reduction ◽  
Agricultural Development ◽  
Public Investment ◽  
Memorial Lecture ◽  
Asian Countries ◽  
Poor Growth ◽  
Strong Positive Relationship ◽  
Inflation Rates ◽  
Macroeconomic Determinants ◽  
The Impact

The objective of this paper is to assemble on a systematic basis the available data on Asian countries and then analyse the relationship between growth and poverty reduction in a long-term perspective, as well as the impact of different macroeconomic variables on the intensity of this relationship. The results indicate that there is not only a strong positive relationship between growth and poverty reduction, but also that this relationship is highly variable across countries and time periods. The key macroeconomic determinants of the degree of pro-poor growth appear to be the rates of employment and agricultural growth. Inflation, at least up to a certain rate, does not impact poverty negatively, while the role of exports is essentially indirect through the contribution to the overall rate of economic growth. Examination of the change in policy stance of the Asian countries during the 1990s in relation to the 1980s demonstrates that on balance the mix of policies has not been pro-poor. The apparent sacrifice of growth in pursuit of macroeconomic stability has diminished the impact on poverty reduction. Given the relatively weak trade-off between inflation and growth with regard to the impact on poverty and the fact that inflation rates are currently low in the region, it is argued that countries can be more flexible in their policy stance with regard to the adoption of more growth-oriented as opposed to stabilisation policies. In particular, a case is made for resorting to a more expansionary counter-cyclical fiscal policy, led by higher levels of public investment, supported by appropriate monetary and exchange rate policies. The paper concludes with a detailed description of the policies designed to achieve faster agricultural development and greater employment generation.

Pro-poor and inclusive growth in West Africa

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Opeoluwa Adeniyi Adeosun ◽  
Mosab I. Tabash
Keyword(s):  
Income Distribution ◽  
Poverty Reduction ◽  
Dynamic Models ◽  
Trade Openness ◽  
Interactive Effects ◽  
Inclusive Growth ◽  
African Region ◽  
Cross Sectional ◽  
Poor Growth ◽  
Content Type

PurposeThis paper focuses on three key metrics of poverty, income distribution and employment to ascertain the pro-poor and inclusive-growth position of the western African region. The roles of governance structures and their interactive effects are also accommodated to capture the peculiarity of the region.Design/methodology/approachThe paper employs fixed and dynamic models.FindingsEvidence suggests that growth is pro-poor, although virtually all governance indicators are sterile in stimulating poverty reduction. The authors observe that health and education spending coupled with trade-openness stimulate pro-poor growth potentials, whereas conflicts culminate the pervasiveness of poverty in the region. By empirically answering the question of how inclusive is economic growth through the lens of income-distribution and employment, the authors show that growth has been exclusive as per-capita-GDP growth rather dampens income shared by the poorest 20%. Also, it is observed that growth has not been inclusive as the jobless-growth argument remains valid while high inequality further exacerbates unemployment in the region. It is further shown that governance has been generally weak in propelling inclusive growth except where the institutional-component of governance stimulates inclusive growth through improvement in equality and labor employability.Originality/valueThe study jointly examines the metrics of poverty, income distribution and employment to ascertain growth pro-poorness and inclusivity which are key for the achievement of African-union (AU) agenda 2063. The study captures cross-sectional dependence among selected countries which previous studies ignored.

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