Growth is Good for the Poor

David Dollar and Aart Kraay
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David Dollar: Development Research Group, The World Bank
Aart Kraay: Development Research Group, The World Bank

No 744, CEMA Working Papers from China Economics and Management Academy, Central University of Finance and Economics

Abstract: Average incomes of the poorest quintile rise proportionately with average incomes in a sample of 92 countries spanning the last four decades. This is because the share of income of the poorest quintile does not vary systematically with average income. It also does not vary with many of the policies and institutions that explain growth rates of average incomes, nor does it vary with measures of policies intended to benefit the poorest in society. This evidence emphasizes the importance of economic growth for poverty reduction.

Keywords: income inequality; poverty; growth (search for similar items in EconPapers)
JEL-codes: D3 I3 O1 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:cuf:wpaper:744

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