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Which Growth Theory is Good for the Poor?

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  • Charles Gore

Abstract

Neoclassical and new endogenous growth theories based on an aggregate production function and general equilibrium framework are not good for the poor because their conceptual structure does not enable a good explanation of growth-poverty relationships. Alternative growth theories, which take account of the technological capabilities of economic agents and their institutional matrix, the dynamics of production structures and the role of demand, in contrast, are good for the poor in this sense. Bridging the gulf between policies to promote technological progress and policies to promote poverty reduction is best achieved through the development of productive capacities and expansion of productive employment opportunities based on a synthesis of these alternative growth theories. La théorie néoclassique et les nouvelles théories de la croissance endogène basées sur une fonction de production agrégée et un modèle d'équilibre général ne fournissent pas une bonne explication des relations entre pauvreté et croissance. Il faut des théories alternatives, qui prennent en compte les capacités technologiques des agents et leur environnement institutionnel, les dynamiques des structures de production et le rôle de la demande. Ces théories alternatives pourraient fonder des stratégies de développement des capacités productives et des emplois mieux à même de réduire l'écart entre les politiques qui promeuvent le progrès technologique et celles qui s'intéressent à la réduction de la pauvreté.

Suggested Citation

  • Charles Gore, 2007. "Which Growth Theory is Good for the Poor?," The European Journal of Development Research, Taylor and Francis Journals, vol. 19(1), pages 30-48.
  • Handle: RePEc:taf:eurjdr:v:19:y:2007:i:1:p:30-48
    DOI: 10.1080/09578810601144269
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    Cited by:

    1. Jordan Kjosevski, 2024. "Examining the relationship between bank profitability and economic growth: insights from Central and Eastern Europe," Bank i Kredyt, Narodowy Bank Polski, vol. 55(2), pages 181-200.
    2. Dayal Talukder, 2014. "Agricultural Trade Liberalization and Poverty in Rural Bangladesh," Poverty & Public Policy, John Wiley & Sons, vol. 6(3), pages 282-307, September.
    3. Ali, Ershad & Talukder, Dayal, 2010. "Agricultural Trade Liberalisation and Economic Growth in Developing Countries: Analysis of Distributional Consequences," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 11(2), pages 1-13, August.
    4. Andy Sumner & Meera Tiwari, 2009. "After 2015: What are the ingredients of an 'MDG-PLUS' agenda for poverty reduction?," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(6), pages 834-843.
    5. MASCA Simona-Gabriela & JUDE Cristina, 2009. "The Vicious Circle Of Fdi And Consumption In Romania," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 2(1), pages 417-423, May.
    6. Dayal Talukder, 2011. "Are Private Providers more Productive and Efficient than Public Providers of International Education? Evidence from New Zealand," Oeconomics of Knowledge, Saphira Publishing House, vol. 3(4), pages 2-23, October.
    7. Charles Gore, 2010. "The global recession of 2009 in a long-term development perspective," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(6), pages 714-738.
    8. Petreski, Marjan, 2009. "Analysis of exchange-rate regime effect on growth: theoretical channels and empirical evidence with panel data," Economics Discussion Papers 2009-49, Kiel Institute for the World Economy (IfW Kiel).
    9. Franklin Obeng-Odoom, 2020. "Teaching Sustainability: From Monism and Pluralism to Citizenship," Journal of Education for Sustainable Development, , vol. 14(2), pages 235-252, September.

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