Is Growth Enough? Macroeconomic Policy and Poverty Reduction

By Carlos A Leite, Charalambos G Tsangarides, Dhaneshwar Ghura

July 1, 2002

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Carlos A Leite, Charalambos G Tsangarides, and Dhaneshwar Ghura. Is Growth Enough? Macroeconomic Policy and Poverty Reduction, (USA: International Monetary Fund, 2002) accessed September 20, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The paper investigates the existence of "super pro-poor" policies-that is, policies that directly influence the income of the poor after accounting for the effect of growth. It uses a dynamic panel estimator to capture both across- and within-country effects, and a Bayesian-type robustness check to account for model uncertainty. The findings confirm that growth raises the income of the poor, although this relationship is less than one-to-one. The analysis also identifies four super pro-poor conditions that are influenced by policy: inflation, government size, educational achievement, and financial development.

Subject: Income inequality, National accounts, Personal income, Poverty, Poverty reduction, Poverty reduction strategy

Keywords: Bayesian Analysis, East Asia, Economic growth, GMM estimator, Income, Income inequality, Income of the poor, Macroeconomic Policy, Personal income, Poverty Alleviation, Poverty reduction, Poverty reduction strategy, Poverty-reducing effect, Redistribution scheme, Terms of trade, WP

Publication Details

Pages:

39
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2002/118
Stock No:

WPIEA1182002
ISBN:

9781451854091
ISSN:

1018-5941

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