1. A STRUCTURAL ANALYSIS OF GROWTH AND POVERTY IN THE SHORT-TERM.
- Author
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Verme, Paolo
- Subjects
- *
POVERTY research , *ECONOMIC development , *INCOME inequality , *INCOME , *EQUALITY , *TRANSITION economies , *RESEARCH methodology - Abstract
"Growth is good for the poor" is a ubiquitous statement and one generally backed by theory, research and history. In the long-run, growth reduces poverty. Yet, growth in output - per se - is neither a necessary nor a sufficient condition for poverty reduction in the short-term. The paper uses a number of parametric and non-parametric methodologies to assess the relation between growth and poverty in Kazakhstan, a country that experienced rapid growth and poverty reduction in the short-term. Combining macro and micro regional data, we find a very small trickle down effect of output growth on household incomes and no evidence that output growth is correlated with poverty reduction. We find instead that pro-poor growth in household income explains well poverty reduction. [ABSTRACT FROM AUTHOR]
- Published
- 2010
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