Working Papers, Department of Economics, Lund University
When Do the Poor Benefit From Growth, and Why?
Abstract: This paper summarizes and synthesizes some literature that
picks up and extends the discussion of Dollar and Kraay (2000). While most
of the theory has been known for a long time, the empirical material that
has gradually become available in the past decade or so in the form of
household budget surveys has made it possible to paint a more detailed and
nuanced picture than the one usually available. Here, three major arguments
are developed. First, the poverty reduction (PR) impact of a certain rate
of growth depends crucially on the pattern of that growth, with rural
growth usually being more efficient than urban growth, and agricultural
growth more efficient than manufacturing growth. Second, poverty reduction
in agriculture is much stronger in the medium run than in the short run.
This is because the indirect PR effect – a multiplier effect – is typically
much stronger than the direct one. Third, there is much that both
governments and donors can do to improve the rate of PR, including
appropriate targeting of public expenditure, increased provision of primary
education to address growth-hampering income inequality, and better focus
onb gender issues.
Keywords: poverty reduction; growth; agriculture; (follow links to similar papers)
JEL-Codes: F35; O13; O19; Q12; (follow links to similar papers)
36 pages, August 22, 2001
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
- This paper is forthcoming as:
Danielson, Anders, 'When Do the Poor Benefit From Growth, and Why?', Tanzania Economic Trends.
Questions (including download problems) about the papers in this series should be directed to David Edgerton ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom