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Title:When unstable, growth is less pro-poor PDF Logo
Authors:Guillaumont, Patrick
Korachais, Catherine
Issue Date:2010
Series/Report no.:Working paper // World Institute for Development Economics Research 2010,77
Abstract:Macroeconomic instability has been increasingly considered as a factor lowering average income growth and, in this way, is a factor slowing down poverty reduction. But it can also result in slower poverty reduction for a given average rate of growth, due to poverty traps, often examined at the microeconomic level. Testing a model of poverty change on a panel of data for more than 80 countries from 1981 to 2005, we find that income instability results in a lower poverty reduction for a given growth. It reflects a distributional effect not fully captured by a change in the Gini coefficient.
Subjects:income instability
poverty
inequality
economic growth
growth elasticity of poverty
poverty trap
JEL:E32
I30
I32
O15
D31
O40
ISBN:978-92-9230-315-0
Document Type:Working Paper
Appears in Collections:WIDER Working Papers, United Nations University (UNU)

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