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Citation Information

Type Journal Article - The Journal of Developing Areas
Title A structural analysis of growth and poverty in the short-term
Volume 43
Issue 2
Publication (Day/Month/Year) 2010
Page numbers 19-39
URL http://muse.jhu.edu/journals/journal_of_developing_areas/v043/43.2.verme.pdf
"Growth is good for the poor" is a ubiquitous statement and one generally backed by theory,
research and history. In the long-run, growth reduces poverty. Yet, growth in output - per se - is
neither a necessary nor a sufficient condition for poverty reduction in the short-term. The paper
uses a number of parametric and non-parametric methodologies to assess the relation between
growth and poverty in Kazakhstan, a country that experienced rapid growth and poverty reduction
in the short-term. Combining macro and 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 instead that pro-poor growth in household income explains well
poverty reduction.

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