The composition of growth matters for poverty alleviation

Loayza, Norman; Raddatz, Claudio

doi:10.1016/j.jdeveco.2009.03.008

“…While the study of Garuda suggests that IMF programs lead to a deterioration of the income distribution in countries with severe external imbalances but to a relative improvement in distributional indicators if imbalances are small, Vreeland concludes that program participation lowers the labor share of income in the manufacturing sector and thus contributes to rising inequality. In contrast to the study of Garuda that relies on propensity score group comparisons covering 39 countries over the 1975-1991 period, the work of Vreeland is based on a dynamic version of Heckman's (1979) Loayza &Raddatz (2010), andStiglitz (2002) point out that certain conditions have to be met in order for poor people to benefit from economic growth.…”

Section: Empirical Findingsmentioning

confidence: 99%

Revisiting the Effects of IMF Programs on Poverty and Inequality

Oberdabernig

¹

2013

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“…The cross-country literature on economic development has traditionally focused on the poor and on poverty (see, among others, Dollar andKraay 2002, andLoayza andRaddatz 2010 5 ), while the interest in the middle class and the rich has only intensified relatively recently (see, for example, Piketty and Saez 2006, in relation to the rich). Each of the categories has a particular link to economic performance, as captured by different theories.…”

Section: Related Literaturementioning

confidence: 99%

“…Third, middle class people not only have the resources to consume more than the poor, but they are also willing to pay a little extra for quality. The demand generated by the middle class, thus, feeds into investment 5 Loayza and Raddatz (2010) find that growth plays a significant and substantial role in poverty alleviation, and that composition of sectoral growth is an important determinant of how much poverty reduction occurs. On the other hand, Birdsall (2010) argues that the focus on the middle class has been limited because of the laser-like focus of the donor community on reducing absolute poverty.…”

Section: Related Literaturementioning

confidence: 99%

The Role of the Middle Class in Economic Development: What Do Cross-Country Data Show?

Chun

¹

,

Hasan

²

,

Ulubaşoğlu

³

2011

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The views expressed in this paper are those of the author(s) and do not necessarily reflect the views or policies of the Asian Development Bank. Terms of use: Documents inThe ADB Economics Working Paper Series is a forum for stimulating discussion and eliciting feedback on ongoing and recently completed research and policy studies undertaken by the Asian Development Bank (ADB) staff, consultants, or resource persons. The series deals with key economic and development problems, particularly those facing the Asia and Pacific region; as well as conceptual, analytical, or methodological issues relating to project/program economic analysis, and statistical data and measurement. The series aims to enhance the knowledge on Asia's development and policy challenges; strengthen analytical rigor and quality of ADB's country partnership strategies, and its subregional and country operations; and improve the quality and availability of statistical data and development indicators for monitoring development effectiveness.

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“…An analysis of spells of poverty change leads to the conclusion that cross-country differences in growth, especially in the medium-and long run, are the dominate factors explaining changes in poverty. Combining this database of poverty spells with information on sector value added and on global trade, Loayza and Raddatz (2010) investigate how the sector composition of growth affects the economy's capacity to reduce poverty. It is concluded that growth in sectors intensively using unskilled labour has the largest potential for reducing poverty.…”

Section: Introductionmentioning

confidence: 99%

Economic growth and child poverty reduction in Bangladesh and China

Begum

¹

,

Deng

²

,

Gustafsson

³

2012

Journal of Asian Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. Comparisons on the extent of child poverty, over time and across countries, are made using a decomposition framework attributing child poverty differences to differences in the three components mean child income, demographic circumstances and the distribution of child income. Child poverty is found to be more extensive in Bangladesh than in China, and is very much a problem for rural children in both countries. The results show that economic growth can reduce child poverty but does not do so always. For understanding changes over time and across countries in the extent of child poverty, it can be necessary to also consider changes/differences in the distribution of child income as well as in the demographic composition.JEL Classification: I32, J13, J15

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The composition of growth matters for poverty alleviation

Cited by 284 publications

References 21 publications

Revisiting the Effects of IMF Programs on Poverty and Inequality

Revisiting the Effects of IMF Programs on Poverty and Inequality

The Role of the Middle Class in Economic Development: What Do Cross-Country Data Show?

Economic growth and child poverty reduction in Bangladesh and China

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