India: Defining and Explaining Inclusive Growth and Poverty Reduction
35 Pages Posted: 15 May 2014
Date Written: April 2014
We document the evolution of poverty and inequality across Indian states during the recent period of rapid growth (2004-09), and examine the role of growth and distribution in reducing poverty. Robust economic growth has been a major driver of poverty reduction and inclusiveness in India. We explore the role of economic policies and macrofinancial conditions in explaining inclusive growth and its components, using a new measure of inclusive growth. Social expenditures, spending on education, and educational attainment rates are important for fostering inclusive growth. Macro-financial stability, with particular attention to inflation risks, is also criticial for promoting inclusive growth.
Keywords: Economic growth, India, Income distribution, Poverty reduction, state level growth, inequality, inclusive growth, consumption growth, social mobility, social spending, gini, dependent variable, decline in poverty, welfare distribution, gini coefficient, per capita consumption, national poverty line, reducing poverty, consumption expenditure, poverty headcount ratio, social services, inequality decomposition, social welfare, rate of poverty reduction, specific poverty line, household consumption expenditure, gini index, labor market, welfare function, average welfare, pro-poor, changes in poverty, distribution of income, income equality, consumption distribution, per capita expenditure, urban
JEL Classification: O12, O43, D31
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