Is Growth Enough? Macroeconomic Policy and Poverty Reduction
July 1, 2002
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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
Pages:
39
Volume:
2002
DOI:
Issue:
118
Series:
Working Paper No. 2002/118
Stock No:
WPIEA1182002
ISBN:
9781451854091
ISSN:
1018-5941
