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There is a large and growing literature on the relation between economic growth and poverty reduction. The evidence points to a negative correlation between growth and poverty. However, many studies also find that growth does not mechanically reduce poverty, arguing that in many cases rapid economic growth has not necessarily been pro-poor. This paper uses the concept of 'exit time from poverty' to assess the potential of economic growth to reduce poverty in Benin; thus accelerating the progress of the country toward the achievement of the sustainable development goal of eliminating poverty by 2030. It uses nationally representative household data covering the period 2009-2011 and analyses the impacts of various growth scenarios on poverty. The results show that, with a growth rate in income per capita of 4.2% per year, it will take between 7 and 10 years for the average poor household to escape from poverty. The paper also finds that stronger economic growth leads to shorter average time to exit from poverty. However, there is a lot of heterogeneity in the exit time from poverty, with various households' characteristics such as households' size and human capital being important determinants. Taken together, the results suggest that policies to accelerate poverty reduction should emphasize the development of human capital and ensure that growth is inclusive and pro-poor. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment [ABSTRACT FROM AUTHOR]

This paper explores the relation between economic growth and poverty, and develops the methodology to measure separately the impact of changes in average income and income inequality on poverty The paper also provides a link between the growth rates in various sectors of the economy and the total poverty. The methodology proposed is applied to the data taken from the Côte d'Ivoire Living Standards Survey conducted in 1985. [ABSTRACT FROM AUTHOR]

The international donor community has grave concerns about the effectiveness of aid to countries it classifies as ‘fragile states’. The impact of aid on growth and poverty reduction and the ability to efficiently absorb additional inflows is thought to be significantly lower in these countries compared to other recipients. This paper examines this issue and suggests that a while a number of fragile states can efficiently absorb more aid than they have received, a number receive far more aid than they can efficiently absorb from a perspective based purely on per capita income growth. Policy recommendations are provided. Copyright © 2008 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Based on household survey datasets and the framework of pro-poor growth, the present paper discusses how economic growth and inequality affect poverty reduction in urban China. The findings in this paper suggest that the poor benefit from economic growth through the trickle-down effect, but that the poor benefit disproportionally less than the nonpoor in both periods, from 1988 to 1995 and from 1995 to 2002; however, in the latter period, the pro-poorness is higher than that of the former period. Using the principle of Shapley decomposition, this paper develops an index of pro-poor growth for each income component, and finds that the income from informal jobs is the main contributor to the pro-poorness of growth during the period 1995 to 2002. [ABSTRACT FROM AUTHOR]

This paper criticises the World Bank as overly optimistic with respect to its ability to fine-tune development aid and to focus it on countries with ‘good’ policies rather than on countries with ‘poor’ policies in order to raise its effectiveness. It is shown that recipient regions showed very different patterns of aid inflows and economic growth in the past and that aid flows yielded the highest correlation to growth when their magnitudes shrank. It is furthermore argued that categorising countries by quality of domestic policies is not only questionable at a given point of time especially in countries with failing governmental institutions and open borders as in many African countries. It suffers also from incentive problems so that countries receiving more aid can become victims of changes in their domestic policies which are more permissive and etatist to the disadvantage of private agents. The paper instead pleads for a shift to aid policies decoupled from country-specifics and more oriented to fundamental ‘beyond border’ problems of the well-being of the poor. An international endowment fund under supranational law should finance research and implementation of research findings related to common international goods as it was suggested by Sachs concerning aids and tropical disease research. [ABSTRACT FROM AUTHOR]

In spite of fast growth and increasing average income levels, China's development has been uneven across various sectors and regions. This uneven development has reduced the life satisfaction of many people and has caused social tensions. Using four rounds of the Chinese Household Income Project data, this paper investigates social tensions caused by inequality, poverty and polarization across rural and urban areas, and across the Eastern, Central and Western regions, and between the emerging super provinces/megacities and the rest. It shows that although tensions have been significantly alleviated by fast economic growth, the impact of growth imbalances is still very severe. China should focus on more balanced growth in addition to a high rate of growth. [ABSTRACT FROM AUTHOR]

This paper analyses the impact of tourism on total and extreme monetary poverty, in order to illuminate the debate surrounding the links between tourism and poverty. We apply fixed effects models to panel data on the Peruvian departments for the period 2001-2013. We also identify the key factors in the tourism model affecting the empirical results. Our findings show that tourism is important for the poor, but its benefits do not reach the extreme poor to the same extent, and its potential is not fully exploited. The weak macroenvironment and low community participation impede poverty reduction through tourism. [ABSTRACT FROM AUTHOR]

This paper provides evidence on growth and income poverty in Latin America and the Caribbean (LAC). Results are obtained by processing microdata from household surveys of 18 LAC countries covering the 1990s and early 2000s. Over this period the LAC economies experienced heterogeneous patterns of growth and poverty changes. Most countries in the region had a rather meager performance in terms of poverty reduction. Episodes of positive, significant and unambiguously pro-poor income growth have been rare in Latin America. [ABSTRACT FROM AUTHOR]

This paper shows that an important requirement of the MIRAB model, economic success in the host country, is a characteristic of Pacific Islander migrants to the USA and their offspring. Pacific Islanders improved their economic lot in the 1980s and again in the 1990s. Part of this improvement was due to increases in their human capital: Pacific Islanders acquired more education, work experience and better English language skills. This upgrading allowed more workers to acquire white-collar jobs and to increase their earnings. [ABSTRACT FROM AUTHOR]

Recent literature reports that foreign aid contributes to economic growth when economic policies are good. This paper claims that aid can contribute not just to growth but also to pro-poor growth, through increasing the responsiveness of social indicators to economic growth. The empirical evidence we present is in favour of this claim, suggesting that both aid itself and a recipient government's budget share allocated to social services tend to increase the (absolute) size of the income elasticity of poverty and infant mortality, and that, moreover, aid tends to increase this budget share. Copyright © 2006 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This article addresses central issues related to population policy and economic development. Poverty and prosperity are normally marked by boundaries. These boundaries are also the borders of countries. The familiar exchange-rate comparisons of per capita incomes often overstate international differences in standards of living, but even the best available purchasing-power-parity statistics give the richest countries per capita incomes 10 and 20 times as great as the poorest countries. The statistics also suggest that migrants from poor to rich countries normally obtain great increases in wage rates, and the persistence of the migration confirms that these increases are not statistical illusions. It was shown in this paper that the coincidences of the demarcations of poverty and prosperity with national borders, and the experiences of migrants crossing these borders, offer insights for both economists and demographers, and indeed for anyone who is anxious to alleviate poverty and hasten the progress of the less developed countries. A fresh perspective on the population problem can be achieved and even begin to uncover the key to economic development, by asking how well migration and the great differences in per capita incomes across countries are explained by diminishing returns.

In broad terms, reduction in poverty can come about through redistributions among households at an existing level of average income, or through growth in average incomes, or through a combination of the two. However, both theoretical and empirical considerations suggest that growth of average household incomes is likely to be necessary to achieve sustained long-term poverty reductions. But the pattern of this growth is important; clearly a growth pattern where the benefits accrue disproportionately to the richest in a society will have less poverty impact than one where the benefits are equally distributed or biased towards the poor. This is likely to be particularly important in countries where growth is likely to be slow. This paper reflects on the relationship between growth in household incomes, inequality and poverty. © 1997 by John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

The MDG employment indicators suffer from major shortcomings, including measurement problems, inappropriate use of aggregate statistics, ambiguous interpretability, and assumptions that do not apply to developing countries. Based on this critique, the authors propose a new set of four indicators for productive employment and decent work, namely: the growth of labour value added per worker, the working poverty rate, the share of workers receiving less than an absolute minimum labour income, and the share of workers receiving less than 60 per cent of the median labour income. They demonstrate the empirical application of these indicators using the country cases of Uganda and Peru. [ABSTRACT FROM AUTHOR]

This paper examines the impact of health status on poverty status, accounting for the endogeneity of health status. Using exogenous measures of health status from the South African Integrated Health Survey, we instrument for health status while allowing for covariation among the unobservables influencing both health and household poverty status. Health status, as captured by the body mass index, is shown to strongly influence poverty status. Households that contain more unhealthy individuals are 60 per cent more likely to be income poor than households that contain fewer unhealthy individuals, and this finding appears invariant to the choice of poverty line. [ABSTRACT FROM AUTHOR]

This article examines the dynamics of the income-distribution pattern in India during the post-1991 economic reforms. It considers district-level per-capita income data across agriculture, manufacturing, services, and various constituent sub-sectors, and finds evidence in favour of a uniform process of growth across sectors and regions, which has helped to reduce poverty. In particular, the article finds that growth in agricultural income and access to finance are important for this. [ABSTRACT FROM AUTHOR]

This work adapts per capita income, energy demand (sub-group decomposed), inequality and poverty frameworks in a simultaneous equations setting to investigate the role of energy sources on per capita income, inequality and poverty in South Africa. It finds that energy sources (particularly electricity and diesel) are important in estimating production functions. Gasoline, kerosene and coal all exacerbate poverty, with the highest impacts on abject poverty. It is better to disaggregate energy sources in order to capture resource-specific details. Redistribution efforts that focus on reduction of between-group inequality can also moderate energy use since between-group inequality tends to increase the demand for most energy sources. Public efforts are yielding fruits in this direction and should be encouraged. Access to energy sources like electricity, diesel and gas are crucial for productivity enhancement, but for them to yield significant anti-poverty fruits, efforts must also target broadening capital access by the poor. [ABSTRACT FROM AUTHOR]

The pursuit of high economic growth is considered desirable as it generates an increase in a nation's wealth, income, employment and output. The rising income should enable consumers to purchase more goods and services, which in turn should result in enhanced utility and subjective happiness. Empirical studies suggest that higher income resulting from high rates of economic growth contribute to poverty alleviation and life satisfaction in low income countries. Higher income raises the happiness of the poor. In developed countries, higher income does not seem to “buy” higher happiness, once a threshold level of income is reached. This exploratory study seeks to examine the quantitative and qualitative sources of happiness. A higher absolute level of income is found to be significantly related to subjective happiness. Among the non-income factors, family togetherness, a good working environment and a higher level of education can contribute to making people happier. Happiness thus involves more than just economic growth and income. [ABSTRACT FROM AUTHOR]

This study asks whether, in a rapidly changing world, the estimated proportion of the world's population with income below US$1 (adjusted according to purchasing power parity) per day is still a good measure of trends in poverty. It argues that strong economic growth in nations such as China implies that the commonly accepted international poverty line definition of one half median national equivalent income is increasingly relevant and that poverty intensity (the normalized deficit or Foster–Greer–Thorbecke (FGT) index of order one) is a better summary index. This index has a convenient graphical representation—the “poverty box”. Using the proposed poverty line and the example of ranking the level of rural poverty in Chinese provinces, the study demonstrates how poverty intensity replicates the poverty rankings of the Sen family of poverty indices and captures most of the information content of higher-order FGT indices. [ABSTRACT FROM AUTHOR]

The article focuses on the association between weather risk and poverty as well as the significance of weather index insurance for agricultural and rural areas in lower-income countries in the U.S. Uninsured weather risks tend to contribute to the existence of chronic poverty, though health problems are often considered as the greatest risk encountered by many rural households. The risk of extreme weather events contributes to the existence of chronic poverty. It was concluded that the effective mechanisms transferring risk can catalyze investment and economic growth, lessening poverty in rural areas of lower income countries.

The reform of agriculture in China is cited by scholars advocating economic growth through market reform. Such scholars argue that this aspect of reform has been characterized by the liberalization of markets for agricultural commodities, which spurred production, increased rural incomes, and reduced poverty. This view exaggerates the roles played by open markets and economic growth in that reform. This article argues that the role of the state in redistributing public assets, establishing institutions that supported markets, and designing and implementing poverty reduction policies also reduced poverty in China. I conclude that scholars, not just in China's case but also more generally, should examine the economic and political effects of various possible relationships between state and market. I offer this as one way forward in deepening our understanding of the role of politics and policy in promoting development and reducing poverty. [ABSTRACT FROM AUTHOR]

China's record in reducing poverty over the last three decades has been impressive, yet few studies have examined the incidence of poverty among older people despite the rapid ageing of the population. This article uses a unique national data set to examine patterns of poverty, deprivation and exclusion among the urban aged population (60 years and over) in 2000. The results point to the importance of poverty as an issue for older people, particularly for women and those who live alone. A number of indicators of hardship are developed in four areas – economic insecurity, housing, health, and social isolation – and the incidence of these is examined, separately and in combination, by living arrangement and gender. Women are shown to experience greater levels of hardship and isolation than men, and to be more likely to experience multiple deprivation across two or more areas. Finally, the overlap between poverty and hardship is examined as a way of validating the poverty estimates and giving them greater credibility. The results indicate that there are strong overlaps, although these differ across the different dimensions of hardship. Access to pension income and concern over the cost of necessary visits to see a doctor emerge as strong predictors of poverty and point to areas where policy change is needed. [ABSTRACT FROM AUTHOR]

The article focuses on the implications of globalization for income inequality. Income inequality refers to the degree of dissimilarity of the incomes within a certain chosen unit, such as region, country or the globe. It describes how highly households' or groups' incomes deviate from average income in an income distribution. Most economists see economic growth as a prime move in decreasing poverty and equally distributing the benefits from growth as the cure for inequality. If countries are taken as the unit of analysis, the inequality literature can be split into within-country inequality, between-country equality and global inequality. Motivated by the Solow-Swan growth model and its implications for absolute convergence, researchers, for some time, looked at per capita income differences between countries to approximate world inequality. There are two methodological approaches to measuring global inequality. In the first approach, the whole world is considered like a country and income of each household is counted towards measuring world inequality. The second approach approximates world inequality by taking into account per capita gross domestic products of the countries, between-country income distributions, countries' populations and their within-country income distributions.