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.
Authors
Mulangu, Francis, Benlamine, Mokhtar, Keller, Michael, Nganou, Jean-Pascal
Related Organizations
- 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
Files
Table of Contents
- 1. Introduction 4
- 2. Enhancing Policy Effectiveness through Multidimensional Poverty Measures 6
- 3. Data 8
- Multidimensional poverty index 8
- Other variables 9
- Data structure 9
- Sample 10
- 4. Estimation Strategy 11
- 5. Results 13
- Economic growth and the MPI 13
- Advanced growth measures and the MPI 19
- 6. Robustness Checks 24
- 7. Conclusion 26
- References 27
- Appendix A 30
- Appendix B 49