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Growth is Good for the Poor

Author

Listed:
  • DAVID DOLLAR

    (Development Research Group, The World Bank)

  • AART KRAAY

    (Development Research Group, The World Bank)

Abstract

Average incomes of the poorest quintile rise proportionately with average incomes in a sample of 92 countries spanning the last four decades. This is because the share of income of the poorest quintile does not vary systematically with average income. It also does not vary with many of the policies and institutions that explain growth rates of average incomes, nor does it vary with measures of policies intended to benefit the poorest in society. This evidence emphasizes the importance of economic growth for poverty reduction.

Suggested Citation

  • David Dollar & Aart Kraay, 2002. "Growth is Good for the Poor," CEMA Working Papers 744, China Economics and Management Academy, Central University of Finance and Economics.
    • Handle: RePEc:cuf:wpaper:744
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    File URL: https://down.aefweb.net/WorkingPapers/w744.pdf
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    More about this item

    Keywords

    income inequality; poverty; growth;
    All these keywords.

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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