Some international evidence on poverty alleviation and economic growth

We investigate the evolution of the income share of the poorest 20 per cent of the population, and of the average income level of this group, in a cross-country sample using data from 1965 to 1990. The change in the income share of the poor is negatively correlated with its 1965 level and with 1965 per capita GDP, implying the greatest improvements in poor countries with the most unequal initial income distribution, but is not correlated with economic growth. The average incomes of the poor grow faster in countries with higher growth rates. © 2004 Taylor & Francis Ltd.