In this paper, we analyze, in a novel way, the nature of economic growth in Spain after the Great Recession, in relation to its effect on poverty reduction. We use a statistical test to analyze the pro-poorness nature of economic growth using a stochastic dominance approach, not used in this context so far. We decompose changes in the difference in generalized Lorenz ordinates into a growth effect and an inequality effect and apply this to formal Spanish income data statistical tests based on dominance methods. We found that growth was pro-poor in Spain as a whole between 2013 and 2017. As regards regional growth effects, we conclude that growth was weakly pro-poor in seven of Spain’s 17 regions, it was neither pro-poor nor anti-poor in nine regions, and only weakly anti-poor in one region.
The traditional analysis of economic convergence between countries or regions is usually performed by comparing distribution means, such as per-capita income. This kind of analysis, which is intimately related to the economic welfare of a society, presents, however, only a partial approach to measuring economic convergence, given that the disparities within regions or countries are not considered. The empirical methodology used in this article complements the traditional convergence approach, introducing efficiency and inequality aspects of income distribution. Using first and second stochastic dominance, the convergence among Spanish regions from 1990 to 2003 is studied by means of two new statistics developed here. Per-capita income data taken from the Encuesta de Presupuestos Familiares (EPF [the Spanish Household Budget Survey]) of 1990-1991 and the Spanish Survey on Income and Living Conditions (SILC) of 2003 are employed to make the comparisons. We find that a divergence process is taking place in Spain between rich and poor regions
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