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Title:The poverty elasticity of growth PDF Logo
Authors:Heltberg, Rasmus
Issue Date:2002
Series/Report no.:WIDER Discussion Papers // World Institute for Development Economics (UNU-WIDER) 2002/21
Abstract:How much does economic growth contribute to poverty reduction? I discuss analytical and empirical approches to assess the poverty elasticity of growth, and emphasize that the relationship between growth and poverty change is non-constant. For a given poverty measure, it depends on initial inequality and on the location of the poverty line relative to mean income. In most cases, growth is more important for poverty reduction than changes in inequality, but this does not tender inequality unimportant. Reduction in inequality may be triple effective: (1) it will reduce poverty for a given level of income, (2) it will accelerate the poverty reducing impact of economic growth, and (3) according to crosscountry growth regressions, it may contribute to a larger rate of growth. – poverty ; poverty reduction ; economic growth ; inequality
JEL:I31
O40
ISBN:929190161X
Document Type:Working Paper
Appears in Collections:WIDER Discussion Papers, United Nations University (UNU)

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