SANTOS Maria Emma
Growth and Poverty Revisited from a Multidimensional Perspective
MARIA EMMA SANTOS; DABUS, CARLOS; DELBIANCO, FERNANDO
OPHI Working Paper
Oxford Poverty and Human Development Initiative
Año: 2016 vol. 105 p. 1 - 1
The actual impact of economic growth on poverty reduction is of fundamental importance to thedevelopment agenda, especially in view of the Sustainable Development Goals. So far, studies havefocused on income poverty. This paper offers new empirical evidence on growth and poverty measuredfrom a multidimensional perspective using the global Multidimensional Poverty Index. Results from afirst difference estimator model suggest that while economic growth reduces multidimensional poverty,this impact is well below a one-to-one relationship. We also find that economic growth has a far biggerimpact on reducing income poverty than on reducing multidimensional poverty. Results from analternative cross-section model also support this result and additionally suggest that countries with higherlevels of exports, a higher share of industry and services in their GDPs, and higher control of corruptionhave lower multidimensional poverty. All in all, the results highlight the need for countries to grow inorder to reduce poverty, but they simultaneously suggest the limited power of economic growth per se toachieve grand reductions in poverty.