Sethi, Amarjit Singh

Some methodological aspects of rates of growth computations: limitations and alternatives - 2008 - p.195-209. - Jan-Jun

This study assesses the impact of economic growth on absolute poverty in Pakistan over the last four decades. The article attempts to answer the relatively ignored basic question: is economic growth in Pakistan pro-poor? In addition, an attempt has been made to evaluate the distribution of income within poor, a step necessary to determine the sensitivity of different income groups, below poverty line, to the economic growth. These assessments are conducted through Growth Incidence Curves - a superior poverty measure - and calculation of the Rate of Pro-Poor Growth (RPPG) and the Ordinary Rate of Growth (ORG). This study finds that economic growth in Pakistan is not intrinsically pro-poor. Although it was pro-poor in the seventies and is also the same in the current decade, and strongly pro-poor in the eighties, a positive growth in the nineties was, however, anti-poor. The analysis shows that the first decline is most sensitive to economic growth and most vulnerable to economic shocks. - Reproduced.


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