Journal of Economic Growth

, Volume 7, Issue 3, pp 195–225

Growth is Good for the Poor


  • David Dollar
    • Development Research GroupThe World Bank
  • Aart Kraay
    • Development Research GroupThe World Bank

DOI: 10.1023/A:1020139631000

Cite this article as:
Dollar, D. & Kraay, A. Journal of Economic Growth (2002) 7: 195. doi:10.1023/A:1020139631000


Average incomes of the poorest quintile rise proportionately with average incomes in a sample of 92 countries spanning the last four decades. This is because the share of income of the poorest quintile does not vary systematically with average income. It also does not vary with many of the policies and institutions that explain growth rates of average incomes, nor does it vary with measures of policies intended to benefit the poorest in society. This evidence emphasizes the importance of economic growth for poverty reduction.

income inequalitypovertygrowth

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© Kluwer Academic Publishers 2002