Template-type: ReDIF-Paper 1.0
Author-Name: Verme Paolo
Author-Email: paolo.verme@unito.it
Author-Workplace-Name: University of Turin
Author-Workplace-Homepage: http://www.est.unito.it/
Title: A Structural Analysis of Growth and Poverty in the Short-Term
Abstract: "Growth is good for the poor" is a ubíquítous statement and one generally backed by theory, research and 
history. In the long-run, growth reduces poverty. Yet, growth in output - per se - ís neíther a necessary nor a 
sutficíent condítíon for poverty reductíon, especíally in the short-term And the short-term matters a great deal 
to tbc poor. `Che paper uses a number of parametric, non-parametric and decomposition methodologies to assess 
regional changes in output, income, poverty and inequality in one transition economy which experienced fast growth 
and fast poverty reductìon over a short period of time. Tbc purpose is to test what is behind this simple covariance 
that led observers to conclude that output growth deternined poverty reduction. Combining macro e micro regional 
data, we find a very small trickle down effect of output growth on household incomes and no evidence that output 
growth is correlated with poverty reduction. We find ínstead that a modest growth in household íncome combined 
with a pro-poor distribution of such growth explains well poverty reduction. Effective shorterm poverty reductíon 
polícies should focus on pro-poor actions where pro-poor means making sure that marginal changes among the incomes 
of the poor outperform marginaI changes among theincomes of the rich. 
Length: 23 pages
Creation-Date: 2007-06
File-URL: http://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2007dip/5_wp_verme.pdf
File-Format: Application/PDF
Handle: RePEc:uto:dipeco:200705