9.6.6 Poverty and Growth
The dynamics of poverty are closely related to income growth. The economic literature has gathered abundant evidence supporting the fact that absolute poverty tends to fall with economic growth.122 Moreover, the longer the growth spells under consideration, the larger the share of the variance in poverty that is accounted for by the growth component (Ferreira, 2010). Figure 9.24 illustrates this relationship by showing poverty along with two alternatives measures of mean income: per capita gross national income (GNI) constructed from National Accounts, and per capita consumption obtained from household surveys. The figure shows the unweighted mean of these variables among developing countries in the period 1981–2010. ...
