A Unified Framework for Pro-Poor Growth Analysis
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...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, D.C.
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2004/09/5119784/unified-framework-pro-poor-growth-analysis http://hdl.handle.net/10986/14140 |
| Summary: | 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. |
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