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A structural analysis of growth and poverty in the short-term

Paolo Verme

Journal of Developing Areas, 2010, vol. 43, issue 2, 19-39

Abstract: “Growth is good for the poor” is a ubiquitous statement and one generally backed by theory, research and history. In the long-run, growth reduces poverty. Yet, growth in output - per se - is neither a necessary nor a sufficient condition for poverty reduction in the short-term. The paper uses a number of parametric and non-parametric methodologies to assess the relation between growth and poverty in Kazakhstan, a country that experienced rapid growth and poverty reduction in the short-term. Combining macro and micro regional data, we find a very small trickle down effect of output growth on household incomes and no evidence that output growth is correlated with poverty reduction. We find instead that pro-poor growth in household income explains well poverty reduction.

Keywords: Central Asia; Kazakhstan; Growth; Poverty; Inequality (search for similar items in EconPapers)
JEL-codes: I3 O4 P2 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (6)

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Working Paper: A Structural Analysis of Growth and Poverty in the Short-Term (2007) Downloads
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