Testing for Pro-Poorness of Growth, with an Application to Mexico

CIRPEE Working Paper No. 07-09

32 Pages Posted: 3 Apr 2007 Last revised: 16 Jul 2018

See all articles by Abdelkrim Araar

Abdelkrim Araar

Université Laval - Département d'Économique

Jean-Yves Duclos

Laval University; IZA Institute of Labor Economics

Mathieu Audet

World Bank

Paul Makdissi

Université de Sherbrooke - Department of Economics

Date Written: March 1, 2007

Abstract

This paper proposes techniques to test for whether growth has been pro-poor. We first review different definitions of pro-poorness and argue for the use of methods that can generate results that are robust over classes of pro-poor measures and ranges of poverty lines. We then provide statistical procedures that rely on the use of sample data to infer whether growth has been pro-poor in a population. We apply these procedures to Mexican household surveys for the years of 1992, 1998 and 2004. We find strong statistical evidence that Mexican growth has been absolutely anti-poor between 1992 and 1998, absolutely pro-poor between 1998 and 2004 and between 1992 and 2004, and relatively pro-poor between 1992 and 2004 and between 1998 and 2004. The relative assessment of the period between 1992 and 1998 is statistically too weak to lead to a robust evaluation of that period.

Keywords: Pro-poor growth, poverty, inequality

JEL Classification: D63, D64

Suggested Citation

Araar, Abdelkrim and Duclos, Jean-Yves and Audet, Mathieu and Makdissi, Paul, Testing for Pro-Poorness of Growth, with an Application to Mexico (March 1, 2007). CIRPEE Working Paper No. 07-09, Available at SSRN: https://ssrn.com/abstract=977235 or http://dx.doi.org/10.2139/ssrn.977235

Abdelkrim Araar

Université Laval - Département d'Économique ( email )

CREFA
Ste-Foy, Quebec 179Que G1K
Canada

Jean-Yves Duclos (Contact Author)

Laval University ( email )

Quebec G1K 7P4
Canada
418-656-7096 (Phone)
418-656-9727 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Mathieu Audet

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Paul Makdissi

Université de Sherbrooke - Department of Economics ( email )

2500, Boulevard of the University
Sherbrooke J1K 2R1, Quebec
Canada

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