Search Results

You are looking at 1 - 6 of 6 items for :

  • "growth-poverty-inequality nexus" x
Clear All
Mr. Kevin J Carey, Mr. Sanjeev Gupta, and Ms. Catherine A Pattillo

rise with growth, thereby contributing to poverty reduction. At the same time, the extent of poverty reduction in a country would depend on the initial income distribution, making the measurement of inequality an important indicator for evaluating the country’s prospects of reaching the income poverty MDG. Recent evidence of different rates of poverty reduction and rising inequality in sub-Saharan Africa points to the continued relevance of the growth-poverty-inequality nexus ( Iradian, 2005 ). Increasing inequality is of particular concern when it undercuts the

Mr. Sanjeev Gupta, Ms. Catherine A Pattillo, and Mr. Kevin J Carey
Are improvements in growth in Sub-Saharan Africa (SSA) since the mid-1990s sustainable? What types of growth strategies contribute the most to reducing poverty? This paper examines these questions in four stages. First, it explores the factors contributing to the post- 1995 improvement in growth. Second, to shed some light on factors associated with substantial jumps in growth rates that are sustained in the medium term, an analysis of the correlates of growth accelerations is presented. Third, the paper examines the consistency of the SSA data with some important predictions from the literature directly linking such areas as fiscal policy, financial development, or institutions and growth. Fourth, it reviews recent evidence regarding lessons on the type of growth process that is most effective at raising the incomes of the poor.
Ms. Valerie Cerra, Mr. Ruy Lama, and Norman Loayza

Growth in GDP per capita across Country Groups Figure 5. Relationship among GDP per capita Growth, Inequality, and Poverty Figure 6. Tax Revenues and Spending on Health and Education, by Country Group Figure 7. Income Redistribution by Country Group Figure 8. Growth in GDP per capita vs Initial Poverty Figure 9. Growth in GDP per capita vs Initial Inequality Figure 10. Access to Health and Education Figure 11. Key Channels in the Growth-Poverty -Inequality Nexus Figure 12. Empirical Literature on Growth-Poverty-Inequality Nexus Tables Table 1

Ms. Valerie Cerra, Mr. Ruy Lama, and Norman Loayza
Is there a tradeoff between raising growth and reducing inequality and poverty? This paper reviews the theoretical and empirical literature on the complex links between growth, inequality, and poverty, with causation going in both directions. The evidence suggests that growth can be effective in reducing poverty, but its impact on inequality is ambiguous and depends on the underlying sources of growth. The impact of poverty and inequality on growth is likewise ambiguous, as several channels mediate the relationship. But most plausible mechanisms suggest that poverty and inequality reduce growth, at least in the long run. Policies play a role in shaping these relationships and those designed to improve equality of opportunity can simultaneously improve inclusiveness and growth.
Ms. Valerie Cerra, Mr. Ruy Lama, and Norman Loayza

, and poverty. Following this idea, Figure 12 summarizes the evidence from a large number of empirical papers on the multidirectional links in the nexus between growth, inequality, and poverty. Figure 11. Key Channels in the Growth–Poverty–Inequality Nexus Source: Authors. Note: L = labor; MP = marginal product. Figure 12. Empirical Literature on the Growth-Poverty-Inequality Nexus Source: Authors’ compilations. Note: Fifty-eight empirical papers were numerically ordered from oldest to most recent. The specific paper attached to the numbering

Mr. Sanjeev Gupta, Ms. Catherine A Pattillo, and Mr. Kevin J Carey

’s prospects of reaching the income poverty MDG. Recent evidence of different rates of poverty reduction and rising inequality in SSA points to the continued relevance of the growth-poverty-inequality nexus ( Iradian, 2005 ). Increasing inequality is of particular concern when it undercuts the ability of growth to benefit society’s least well-off members. A set of recent studies has therefore sought to draw lessons on the type of growth process that is most effective at raising the incomes of the poor: “pro-poor,” or “shared” growth. Focusing on the macroeconomic issues