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On the poverty-growth elasticity

Author

Listed:
  • Channing Arndt
  • Kristi Mahrt
  • Caroline Schimanski

Abstract

Poverty-growth elasticities are frequently calculated to provide insight into the inclusiveness of the growth process. Mathematically, the formula employed to calculate the growth elasticity of poverty leads to lower values for higher initial poverty rates, ceteris paribus. This paper discusses the potential for this property to produce misleading results both over time and space. Poverty-growth semi-elasticities provide a more robust measure of the responsiveness of poverty to growth.

Suggested Citation

  • Channing Arndt & Kristi Mahrt & Caroline Schimanski, 2017. "On the poverty-growth elasticity," WIDER Working Paper Series wp-2017-149, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2017-149
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    References listed on IDEAS

    as
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    6. Ms. Anne Epaulard, 2003. "Macroeconomic Performance and Poverty Reduction," IMF Working Papers 2003/072, International Monetary Fund.
    7. World Bank, 2015. "World Development Indicators 2015," World Bank Publications - Books, The World Bank Group, number 21634.
    8. Rati Ram, 2013. "Income elasticity of poverty in developing countries: updated estimates from new data," Applied Economics Letters, Taylor & Francis Journals, vol. 20(6), pages 554-558, April.
    9. Augustin Kwasi Fosu, 2009. "Inequality and the Impact of Growth on Poverty: Comparative Evidence for Sub-Saharan Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 45(5), pages 726-745.
    10. Kalwij, Adriaan & Verschoor, Arjan, 2007. "Not by growth alone: The role of the distribution of income in regional diversity in poverty reduction," European Economic Review, Elsevier, vol. 51(4), pages 805-829, May.
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    Cited by:

    1. Balakrushna Padhi & Mohammad Kashif Khan & Lalhriatchiani, 2020. "A Poverty Decomposition Analysis for the Northeastern Region of India," Review of Development and Change, , vol. 25(2), pages 237-255, December.

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