Pro Poor Growth in Pakistan: An Assessment of the 1970s, 1980s, 1990s and 2000s

Muhammad Omer and Sarah Jafri

MPRA Paper from University Library of Munich, Germany

Abstract: This study assesses the impact of economic growth on absolute poverty in Pakistan over the last four decades. The paper attempts to answer the question; is economic growth in Pakistan pro poor? In addition, an attempt is made to evaluate the distribution of income within the poor to determine the sensitivity of different income groups, below the poverty line, to economic growth. The assessments are conducted through Growth Incidence Curves, a calculation of the Rate of Pro-Poor Growth (RPPG) and the Ordinary Rate of Growth (ORG). it is found that the economic growth in Pakistan is not intrinsically pro poor. Although it was strongly pro poor in the 1980’s and pro poor in the 2000s, growth in the 1970s was neutral for poverty whereas growth in the 1990s was anti poor. The analysis shows that the first decile is most sensitive to economic growth and most vulnerable to economic shocks as well.

Keywords: Pro Poor Growth; Pakistan; Growth Incidence Curve (search for similar items in EconPapers)
JEL-codes: I3 I32 (search for similar items in EconPapers)
Date: 2008
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Published in South Asia Economic Journal 1.9(2008): pp. 51-68

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