cover image: Disaggregated Impacts of Growth on Multidimensional Poverty: Does the Source of Growth Matter?

Disaggregated Impacts of Growth on Multidimensional Poverty: Does the Source of Growth Matter?

27 Sep 2024

This paper presents comprehensive findings on the relationship between economic growth and poverty. Using a first-difference model applied to data from more than 80 countries spanning over 20 years, the paper investigates how changes in gross domestic product affect the Multidimensional Poverty Index and its subcomponents, considering variations in income level, region, and resource dependency. The analysis confirms that economic growth generally reduces the Multidimensional Poverty Index, although the magnitude of the effect varies significantly. It is less pronounced in low-income countries, Sub-Saharan Africa, Latin America and the Caribbean, and resource-dependent countries. The paper disaggregates gross domestic product growth by its dimensions, revealing that growth driven by total factor productivity, consumption, and sustainable growth significantly decreases the Multidimensional Poverty Index. In contrast, factors such as human capital development, capital deepening, investment, government spending, exports, and imports show ambiguous effects on the Multidimensional Poverty Index. These findings suggest that the effectiveness of these factors depends on country-level conditions. Given the clearer positive impact of total factor productivity, consumption, and sustainable growth on reducing multidimensional poverty, policy makers should prioritize strategies that promote these types of growth to fight poverty, especially in contexts where the effects of other growth contributors are uncertain or not well understood.
economic development sustainability economic growth productivity welfare multidimensional poverty sdg 1 macroeconomics and economic growth::economic growth macroeconomics and economic growth::economic development poverty reduction::poverty monitoring & analysis no poverty sdg 8 decent work and economic growth industry::industrial and consumer services and products

Authors

Mulangu, Francis, Benlamine, Mokhtar, Keller, Michael, Nganou, Jean-Pascal

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Citation
“ Mulangu, Francis ; Benlamine, Mokhtar ; Keller, Michael ; Nganou, Jean-Pascal . 2024 . Disaggregated Impacts of Growth on Multidimensional Poverty: Does the Source of Growth Matter? . Policy Research Working Paper; 10930 . © Washington, DC: World Bank . http://hdl.handle.net/10986/42209 License: CC BY 3.0 IGO . ”
Collection(s)
Policy Research Working Papers
DOI
http://dx.doi.org/10.1596/1813-9450-10930
Identifier externaldocumentum
34395110
Identifier internaldocumentum
34395110
Pages
51
Published in
United States of America
RelationisPartofseries
Policy Research Working Paper; 10930
Report
WPS10930
Rights
CC BY 3.0 IGO
Rights Holder
World Bank
Rights URI
https://creativecommons.org/licenses/by/3.0/igo/
UNIT
EFI-AFR1-POV-Poverty and Equity (EAEPV)
URI
https://hdl.handle.net/10986/42209
date disclosure
2024-09-27
region geographical
World

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