Empirics of the Link between Growth and Poverty

Abstract

Many people have questioned whether the
 world's poor share in economic growth. This note
 synthesizes the empirical evidence. The data show that
 economic growth typically reduces poverty and can usually be
 deemed pro-poor. But there is wide divergence across
 countries. In some cases the poor have gained relatively
 little from growth; in other cases they have benefited
 disproportionately. Available data may have weaknesses
 because most empirical studies of poverty are based on
 measures of income or consumption. But poverty is a state in
 which the quality of a person's life falls short of
 some recognized standard of well-being, and so it requires
 that additional dimensions be considered.