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When is growth pro-poor? Evidence from the diverse experiences of India's states (English)

The authors use 20 household surveys for India's 15 major states, spanning 1960-94, to study how initial conditions and the sectoral composition of economic growth interact to influence how much economic growth reduced poverty. The elasticities of measured poverty to farm yields and development spending did not differ significantly across states. But the elasticities of poverty to (urban and rural) non-farm output varied appreciably, and the differences were quantitatively important to the overall rate of poverty reduction. States with initially lower farm productivity, lower rural living standards relative to those in urban areas, and lower literacy experienced a less pro-poor growth process.

Details

  • Author

    Ravallion, Martin Datt, Gaurav

  • Document Date

    1999/12/31

  • Document Type

    Policy Research Working Paper

  • Report Number

    WPS2263

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    India,

  • Region

    South Asia,

  • Disclosure Date

    2010/07/01

  • Doc Name

    When is growth pro-poor? Evidence from the diverse experiences of India's states

  • Keywords

    rate of poverty reduction;Growth Elasticity of Poverty;marginal product of labor;headcount index of poverty;high female literacy rate;high level of urbanization;elasticity of labor demand;water supply and sanitation;Poverty measures;square poverty gap;rate of growth;human resource development;poverty gap index;labor market dualism;consumer price index;expenditure per capita;rural living standard;rate of inflation;cost of living;urban informal sector;distribution of consumption;farm yield;market clearing level;source of income;inequality will;absolute poverty measures;impact on poverty;level of consumption;absolute consumption poverty;aggregate time series;dimension of inequality;source income;rural average consumption;credit market failure;reduction in consumption;determinants of poverty;real wage rate;cost of entry;per capita expenditure;educated rural population;multiplier decomposition method;elasticity of consumption;effect of inflation;rate of change;inequality and growth;household expenditure data;decomposable poverty measure;development research group;food energy intake;labor demand elasticity;point of departure;standard of living;measure of poverty;rural economic growth;incidence of poverty;regression of log;urban economic growth;average household income;difference in poverty;Rural Sector;rural area;agricultural growth;farm sector;income inequality;sectoral composition;interaction effect;wage differential;high elasticity;explanatory variable;agricultural output;fixed effect;initial distribution;cross-country comparison;poverty reducing;high wage;development study;simple model;income disparity;survey period;rural price;Basic Education;farm productivity;consumption pattern;urban sector;consumption distribution;domestic product;household survey;regression coefficient;productivity gain;farm output;natural log;lagged value;inflation rate;dual economy;theoretical model;previous work;rural worker;population distribution;Poverty Measurement;sector analysis;natural calamity;macroeconomic crisis;poverty monitoring;indian states;public health;poverty comparison;empirical model;family welfare;econometric model;skilled workforce;production input;rural economy;urban development;alternative route;labor welfare;factor market;econometric specification;social security;aggregate income;0 hypothesis;production function;planning commission;measured poverty;natural logarithm;inflationary shock;monthly data;low-income worker;confidence interval;joint product;estimation method;linear function;quality growth;agricultural performance;nonfarm sector;Infant Mortality;land holding;urban population;intertemporal variation;point estimate;poverty increase;agricultural land;multiple cropping;high share;political unrest;population share;human asset;separate state;effective strategy;urbanized area;cross-country evidence;random sample;set-up cost;monthly expenditure;inequality effect;wage disparity;poverty impact;technological spillover;low-income strata;poverty datum;adult woman;literate female;asset inequality;labor productivity;risky investment;literate woman;parameter estimate;measurement error;rural farm;survey data;government development;measurement problem;cross-country data;initial yield;productive investment;consumption level;product market;high urbanization;government spending;positive correlation;escape poverty;flood control;poverty alleviation;constant price;Population Growth;trend growth;International Trade;real value;world development;reduced poverty;Public Spending;consumption rate;

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Citation

Ravallion, Martin Datt, Gaurav

When is growth pro-poor? Evidence from the diverse experiences of India's states (English). Policy, Research working paper ; no. WPS 2263 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/359401468751139763/When-is-growth-pro-poor-Evidence-from-the-diverse-experiences-of-Indias-states