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Measuring the Growth-Poverty Link


Motivation

Analysis of  inclusive growth (or "shared" or "pro-poor" growth) requires not only a good understanding of growth at the mean, but also the poverty and distributional impacts. A recent review of World Bank Economic and Sector Work (ESW) revealed that many core Bank products did not make use of readily available analytical tools that could have strengthened the understanding of growth-poverty-inequality linkages.

Objectives

The primary objective of this toolkit is to encourage and facilitate wider use of existing tools for analyzing the empirical links between growth, poverty and inequality. The toolkit is especially oriented to assisting those who may not be very familiar with analyzing microdata from household surveys, or with the commercial software package Stata.

The toolkit brings together many of the existing resources in one place, and builds on this foundation by adding guidance for understanding and interpreting these tools, as well as concrete examples using actual household survey data. The intent is to greatly reduce the time required for Bank staff and consultants to undertake and interpret these types of analysis.

The primary audience for the toolkit is World Bank country economists, as well as other economists and consultants engaged in country-level or cross-country analysis of growth and poverty. The toolkit is web-based, which makes it widely available, as well as easy to update and expand as new tools are developed and old tools are refined.

Approach and Contents

The toolkit presently includes five tools, namely:

Each of these tools appears on separate web pages, each containing the following sections:

  • Definitions and Concepts provides a brief overview of the analytical tool, usually including a mix of equations, graphics, and non-technical English.
  • Limitations gives helpful reminders on the limitations of the particular analysis.
  • Notes / Extensions provides information on extensions, related methods, and interpretation of results.
  • Quick Results provides pointers to software resources, typically Stata and the ADePT (Automated DEC Poverty Tables) package, that can be used for executing the particular analysis.
  • Data Requirements describes briefly the type of data required as inputs to the analysis.
  • Helpful Tips offers guidance on avoiding common errors and basic information about command options.
  • Annotated Examples walks the user step-by-step through one or more examples of applying the tool. This section includes general Stata command syntax for the tool, specific Stata commands for doing the analysis, Stata output from the command,and  interpretation of the output.
  • References / Related Papers provides links to the key published research papers about the tool.

The toolkit also has a page explaining how to install the required Stata ado files and a page from which the user can download the survey data and replicate the results in the annotated examples.


Back to Achieving Shared Growth


Last updated: 2009-03-11




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