GROWTH AND THE POOR: A COMMENT ON DOLLAR AND KRAAY

Malte Lübker, Graham Smith () and John Weeks ()
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Malte Lübker: Department of Economics, SOAS University of London, UK
Graham Smith: Department of Economics, SOAS University of London, UK
John Weeks: Department of Development Studies, SOAS University of London, UK

No 100, Working Papers from Department of Economics, SOAS University of London, UK

Abstract: In a recent paper Dollar and Kraay come to sweeping conclusions about economic growth and the poor. On the basis of the empirical work they assert that standard World Bank and IMF policy packages are good for the poor. This critique demonstrates that (i) the empirical work is based on theoretically unsound equations; (ii) the data are seriously flawed; and (iii) the policy variables are not defined appropriately and are tested in an inconsistent manner. These problems imply that the policy conclusions of the authors are unsafe.

Pages: 31 pages
Date: 2000-10
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