A unified framework for pro-poor growth analysis

B. Essama-Nssah

No 3397, Policy Research Working Paper Series from The World Bank

Abstract: Starting with a general impact indicator as an evaluation criterion, The author offers an integrative framework for a unified discussion of various concepts and measures of pro-poor growth emerging from the current literature. He shows that whether economic growth is considered pro-poor depends fundamentally on the choice of evaluative weights. In addition, the author's framework leads to a new indicator of the rate of pro-poor growth that can be interpreted as the equally distributed equivalent growth rate. This is a distribution-adjusted rate of growth that depends on the chosen level of inequality aversion. Illustrations based on data for Indonesia in the 1990s show a strong link between growth and poverty reduction in that country. A decomposition of the observed poverty outcomes reveals the extent to which changes in inequality have blunted the poverty impacts of both growth and contraction. Finally, the results also demonstrate that absolute and relative indicators of pro-poor growth can lead to conflicting conclusions from the same set of facts.

Keywords: Public Health Promotion; Economic Conditions and Volatility; Health Monitoring&Evaluation; Services&Transfers to Poor; Environmental Economics&Policies; Achieving Shared Growth; Governance Indicators; Economic Conditions and Volatility; Poverty Assessment; Health Monitoring&Evaluation (search for similar items in EconPapers)
Date: 2004-09-01
New Economics Papers: this item is included in nep-afr and nep-dev
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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