Growth, Inequality, and Poverty: An Introduction

Nanak Kakwani, Brahm Prakash and Hyun Son

Asian Development Review (ADR), 2000, vol. 18, issue 02, 1-21

Abstract: The paper provides a summary of all the papers in this special volume. It also gives a brief theoretical introduction to the subject of growth, inequality, and poverty, including the neoclassical growth and new growth theories. It discusses the relationship between growth and inequality, and presents empirical evidence that argues that growth does not lead to inequality. The reverse causation from inequality to growth is also examined. The Dollar and Kraay methodology, which concludes that growth is good for the poor, is also reviewed. Finally, the paper argues that the emphasis on pro-poor growth policies will reduce poverty more rapidly than simple reliance on the trickle down effect. However, poverty reduction with growth also depends on initial inequalities and assets.

Date: 2000
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DOI: 10.1142/S0116110500000063

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