Indian Journal of Economics and Development

Open Access Open Access  Restricted Access Subscription Access

Pro-Poor Growth in India:An Analysis in the Post Reform Period


Affiliations
1 School of Economics, University of Hyderabad, Telangana-500046, India
 

Objective: To examines the pro-poorness of growth in India in the post reform period.

Data & Methodology: The study based on National Sample Survey Organization (NSSO) unit level data of Consumer Expenditure Survey (CES) for 1993-94 (55th), 2004-05 (61st) and 2011-12 (68th) round. The poverty decomposition, pro-poor growth index, poverty equivalent growth and growth incidence curve has been estimated.

Findings: The 1st period (1993-94 to 2004-05) has recorded a slower rise in Monthly per capita consumer expenditure (MPCE) and faster rise in gini causing a slow reduction in poverty. The 2ndperiod (2004-05 to 2011-12) witness a faster rise in real MPCE with a slow growth in inequality causing faster reduction in poverty both in rural and Urban India. The 2nd period is approaching towards the pro-poorness, while the 1st period doesn’t.

Application/Improvements: With poverty reduction the government should focus on the reduction in inequality to achieve pro-poor and inclusive growth. The process of pro-poorness i.e. the factors causing pro-poor growth and the Inclusiveness of the growth can be taken as the further research work.


Keywords

Poverty, Inequality, Rural, Urban, Pro-Poor, Inclusive, India.
User
Notifications

  • Eleventh Five Year Plan. Planning Commission 2007–2012, Government of India. 2008.

  • S. Klasen. Measuring and monitoring inclusive growth: multiple definitions, open questions, and some constructive proposals. ADB Working Paper. 2010; 1-23.

  • B. Mundial. World development report 2006: equity and development. The World Bank. Banco Mundial. 2006; 1-340.

  • I. Ali, H.H. Son. Defining and measuring inclusive growth: application to the Philippines. ERD working paper series. 2007; 1-45.

  • I. Ali, J. Zhuang. Inclusive growth toward a prosperous Asia: policy implications. ERD Working Paper Series. 2007, 1-44.

  • Planning commission, Government India http://planningcommission.gov.in/data/datatable/index.php?data=datatab. Date accessed: 23/12/2014.

  • H. Chenery, M.S. Ahluwalia, J.H. Duloy, C.LG. Bell, R. Jolly. Redistribution with growth; policies to improve income distribution in developing countries in the context of economic growth. Oxford University Press. 1974; 1-304.

  • World development report1990: poverty. The World Bank, Oxford University Press. 1990; 1-276.

  • H.H. Son. A note on pro-poor growth. Economics Letters. 2004, 82(3),307-314.

  • N. Kakwani, E.M. Pernia. What is pro-poor growth? Asian development review. 2000, 18(1), 1-16.

  • N. Kakwani, H.H. Son. Poverty equivalent growth rate. Review of Income and Wealth. 2008; 54(4), 643-655.

  • M. Ravallion, S. Chen. Measuring pro-poor growth. Economics letters. 2003, 78(1), 93-99.

  • M. Ravallio, G. Datt, D. Walle. Quantifying absolute poverty in the developing world. Review of Income and Wealth. 1991, 37(4), 345-361.

  • L.R. Jain, S.D. Tendulkar. Role of growth and distribution in the observed change in headcount ratio measure of poverty: a decomposition exercise for India. Indian Economic Review. 1990, 25(2), 165-205.

  • N. Kakwani, M. Pernia. What is pro-poor growth? Asian development review. 2002, 18(1), 1-16.

  • H.H. Son.A note on pro-poor growth. Economics Letters. 2004, 82(3), 307-314.

  • S. Mishra. Decomposing poverty change: Deciphering change in total population and beyond. Review of Income and Wealth.2015, 61(4), 799-811.

  • D. Dolla, A. Kraay. Growth is good for the poor. Journal of economic growth. 2002, 7(3), 195-225.


Abstract Views: 266

PDF Views: 170




  • Pro-Poor Growth in India:An Analysis in the Post Reform Period

Abstract Views: 266  |  PDF Views: 170

Authors

Priyabrata Sahoo
School of Economics, University of Hyderabad, Telangana-500046, India
Balaji
School of Economics, University of Hyderabad, Telangana-500046, India

Abstract


Objective: To examines the pro-poorness of growth in India in the post reform period.

Data & Methodology: The study based on National Sample Survey Organization (NSSO) unit level data of Consumer Expenditure Survey (CES) for 1993-94 (55th), 2004-05 (61st) and 2011-12 (68th) round. The poverty decomposition, pro-poor growth index, poverty equivalent growth and growth incidence curve has been estimated.

Findings: The 1st period (1993-94 to 2004-05) has recorded a slower rise in Monthly per capita consumer expenditure (MPCE) and faster rise in gini causing a slow reduction in poverty. The 2ndperiod (2004-05 to 2011-12) witness a faster rise in real MPCE with a slow growth in inequality causing faster reduction in poverty both in rural and Urban India. The 2nd period is approaching towards the pro-poorness, while the 1st period doesn’t.

Application/Improvements: With poverty reduction the government should focus on the reduction in inequality to achieve pro-poor and inclusive growth. The process of pro-poorness i.e. the factors causing pro-poor growth and the Inclusiveness of the growth can be taken as the further research work.


Keywords


Poverty, Inequality, Rural, Urban, Pro-Poor, Inclusive, India.

References