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Dominance testing for ‘pro-poor’ growth with an application to European growth

Author

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  • Daniel Sotelsek-Salem
  • Ismael Ahamdanech-Zarco
  • John Bishop

Abstract

This article introduces statistical testing procedures to evaluate ‘pro-poor’ growth. Our measure of ‘pro-poorness’ follows Kakwani (J Quant Econ 16(1):67–80, 2000 ), Kakwani and Pernia (Asian Dev Rev 18(1):1–16, 2000 ), and Son (Econ Lett 82:307–314, 2004 ), who decompose the generalized Lorenz ordinates into a growth effect and an inequality effect. We derive an asymptotic distribution-free covariance matrix for the decomposed generalized Lorenz curves. Using this decomposition (and our standard errors), we test for pro-poor dominance in the growth process. We illustrate our test for the pro-poor dominance by evaluating the degree of pro-poor growth in five European countries. Copyright Springer-Verlag 2012

Suggested Citation

  • Daniel Sotelsek-Salem & Ismael Ahamdanech-Zarco & John Bishop, 2012. "Dominance testing for ‘pro-poor’ growth with an application to European growth," Empirical Economics, Springer, vol. 43(2), pages 723-739, October.
    • Handle: RePEc:spr:empeco:v:43:y:2012:i:2:p:723-739
    DOI: 10.1007/s00181-011-0503-y
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    References listed on IDEAS

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    Cited by:

    1. Ismael Ahamdanech & Carmelo García-Pérez & Mercedes Prieto-Alaiz, 2020. "A Stochastic Dominance Approach to Evaluating Pro-Poor Growth—An Application to the Spanish Case," Sustainability, MDPI, vol. 12(5), pages 1-16, February.
    2. Harmáček, Jaromír & Syrovátka, Miroslav & Dušková, Lenka, 2017. "Pro-poor growth in East Africa," The Quarterly Review of Economics and Finance, Elsevier, vol. 64(C), pages 82-93.

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    More about this item

    Keywords

    Pro-poor growth; Inference tests; Stochastic dominance; D31; D63; I32;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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