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Is Good Economic Policy Good for the Poor?


This paper is concerned with looking at whether good economic policy is good for the poor. Good economic policy as defined by the works bank for example implies that a country has low inflation, small fiscal deficits and an open trade regime the paper notes the general advocacy position that good policy is good for growth and as such it will be expected that good policy would be good for poverty reduction the paper reviews the evidence on this conclusion and suggests that the evidence is mixed the paper then looks at the effect of policy on the average income of the poor for a sample of 42 developing countries the paper shows that the income elasticity of the average income of the poor is generally less than unity, contrary to widely circulated claims that it is equal to one this implies that growth benefits the poor by less than the increase in per capita income moreover, for a properly calculated average income of the poor the paper shows that there does not exist any effect of policy on the poor key words: good economic policy, average income of the poor, poverty

Corporate Author: 
Alemayehu Seyoum ... [et al.] (editor)
Ethiopian Economic Association (EEA)
Primary Descriptors: 

Poverty reduction

Secondary Descriptor: 

Average income of the poor

Geographic Descriptors: 
Developing countries
Cataloge Date: 
Broad Subject heading: 
ecocnomic policy
Call Number: 
330.963 PRO 2005
Serial Key Title: 
Proceedings of the Second International Conference on the Ethiopian Economy
Publication catagory: 
Content type: 
Publication date: 
2013-05-27 23:05:00
Forum or Discussion date: 
2013-02-27 15:02:00
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
Current frequency: