Pro‐poor growth: explaining the cross‐country variation in the growth elasticity of poverty
International Journal of Development Issues
ISSN: 1446-8956
Article publication date: 10 October 2008
Abstract
Purpose
The aim of this paper is to analyse the cross‐country variation in the growth elasticity of poverty across a sample of developing countries during the period from 1990 to 2000.
Design/methodology/approach
In order to identify variables that may explain the cross‐country variation in the growth elasticity of poverty, the paper sets up a theoretical framework. Subsequently, the explanatory power of these variables is tested empirically by panel data econometric analysis.
Findings
For a sample of 52 low and middle income countries, it is found that the level of initial income inequality, credit available to the private sector, literacy, the extent of business regulations and trade openness are important determinants of the growth elasticity of poverty.
Practical implications
Countries that reduce regulatory burdens, improve literacy, increase access to finance, undertake land reforms (asset redistribution), and provide safety nets while liberalizing trade can create more growth and ensure that it is pro‐poor.
Originality/value
The paper identifies variables (at a cross‐country level) that may guide the conscious policies which create pro‐poor growth.
Keywords
Citation
Chhibber, A. and Nayyar, G. (2008), "Pro‐poor growth: explaining the cross‐country variation in the growth elasticity of poverty", International Journal of Development Issues, Vol. 7 No. 2, pp. 160-176. https://doi.org/10.1108/14468950810909123
Publisher
:Emerald Group Publishing Limited
Copyright © 2008, Emerald Group Publishing Limited