Is Growth Enough? Macroeconomic Policy and Poverty Reduction

40 Pages Posted: 1 Feb 2006

See all articles by Dhaneshwar Ghura

Dhaneshwar Ghura

International Monetary Fund (IMF)

Carlos A. Leite

International Monetary Fund (IMF)

Charalambos G. Tsangarides

International Monetary Fund (IMF)

Date Written: July 2002

Abstract

The paper investigates the existence of super pro-poor policies--that is, policies that directly influence the income of the poor after accounting for the effect of growth. It uses a dynamic panel estimator to capture both across- and within-country effects, and a Bayesian-type robustness check to account for model uncertainty. The findings confirm that growth raises the income of the poor, although this relationship is less than one-to-one. The analysis also identifies four super pro-poor conditions that are influenced by policy: inflation, government size, educational achievement, and financial development.

Keywords: Economic Growth, Poverty Alleviation, Macroeconomic Policy, Bayesian Analysis

JEL Classification: C33, E61, I32, O57, C11

Suggested Citation

Ghura, Dhaneshwar and da Cunha Leite, Carlos Alberto and Tsangarides, Charalambos G., Is Growth Enough? Macroeconomic Policy and Poverty Reduction (July 2002). IMF Working Paper No. 02/118, Available at SSRN: https://ssrn.com/abstract=879866

Dhaneshwar Ghura (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Carlos Alberto Da Cunha Leite

International Monetary Fund (IMF) ( email )

700 19th Street NW
African Department
Washington, DC 20431
United States

Charalambos G. Tsangarides

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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