Global Estimates of Pro-Poor Growth

Abstract

The main objective of the present paper is to present a cross-country analysis of pro-poor growth in 80 countries in 237 growth spells during the period 1984-2001. To achieve this objective, the paper proposes a new measure of pro-poor growth that captures gains and losses of growth rates due to changes in the distribution of consumption. The gains imply pro-poor growth, while the losses imply anti-poor growth. The statistical test carried out in the paper shows that regional location of countries has a significant association with the pro-poorness of growth. The paper also attempts to test for the association between growth patterns and certain variables that the literature has identified as significant determinants of growth and inequality. Out of many variables, the paper focuses on four, namely, inflation, the share of agriculture in GDP, openness to trade, and the rule of law.