Growth and Poverty in Burkina Faso: A Reassessment of the Paradox

Posted: 17 Jun 2008

See all articles by Michael Grimm

Michael Grimm

Erasmus University Rotterdam; University of Passau; IZA; DIW Berlin

Isabel Günther

ETH Zürich - Department of Humanities, Social and Political Sciences (GESS)

Date Written: January 2007

Abstract

Previous poverty assessments of Burkina Faso neglected some important methodological issues. They were therefore misleading and led to the so-called Burkinabè Growth-Poverty Paradox , i.e., increasing poverty despite sustained macro-economic growth and constant inequality. We estimate that poverty significantly decreased between 1994 and 2003, i.e., growth was in contrast to what previous poverty estimates suggested pro-poor . However, we also demonstrate that between 1994 and 1998, poverty indeed increased despite a good macro-economic performance. This was caused by a severe drought and the devaluation of the CFA Franc, which led to a profound deterioration of the purchasing power of the poor, an issue, which was also overseen by previous studies.

Keywords: D12, D63, 132, O12

Suggested Citation

Grimm, Michael and Günther, Isabel, Growth and Poverty in Burkina Faso: A Reassessment of the Paradox (January 2007). Journal of African Economies, Vol. 16, Issue 1, pp. 70-101, 2007. Available at SSRN: https://ssrn.com/abstract=1146853 or http://dx.doi.org/ejk018

Michael Grimm (Contact Author)

Erasmus University Rotterdam ( email )

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HOME PAGE: http://www.iss.nl

University of Passau ( email )

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Passau, 94032
Germany

HOME PAGE: http://www.wiwi.uni-passau.de/grimm.html

IZA ( email )

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DIW Berlin ( email )

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Berlin, 10117
Germany

Isabel Günther

ETH Zürich - Department of Humanities, Social and Political Sciences (GESS) ( email )

ETH-Zentrum SEW E 26
CH-8092 Zurich, Zurich 8006
Switzerland

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