Economic Growth, Poverty, and Inequality in Indian States in the Pre-reform and Reform Periods

The paper assesses the impact of economic reforms on poverty incidence by decomposing the change in poverty ratio into growth/mean effect, inequality effect, and population shift effect for the rural and urban areas of 15 major states and at the all-India level. Using National Sample Surveys, data w...

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Main Authors: N.R. BHANUMURTHY, ARUP MITRA
Format: Article
Language:English
Published: World Scientific Publishing 2004-01-01
Series:Asian Development Review
Online Access:https://www.worldscientific.com/doi/10.1142/S0116110504000089
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author N.R. BHANUMURTHY
ARUP MITRA
author_facet N.R. BHANUMURTHY
ARUP MITRA
author_sort N.R. BHANUMURTHY
collection DOAJ
description The paper assesses the impact of economic reforms on poverty incidence by decomposing the change in poverty ratio into growth/mean effect, inequality effect, and population shift effect for the rural and urban areas of 15 major states and at the all-India level. Using National Sample Surveys, data were analyzed for two time periods: (i) 1983 to 1993/4 and (ii) 1993/4 to 1999/2000, broadly representing the pre-reform and reform period, respectively. The growth/mean effect dominates in both periods over the inequality effect and the population shift effect. The growth effect, which is beneficial for poverty reduction, seems to have gone up in the reform period. The adverse inequality effect also fell during the reform period. States with a greater beneficial growth effect in the reform period also show a fall in the magnitude of an adverse population shift effect in the urban areas, i.e., a relatively smaller increase in the incidence of urban poverty caused by rural-urban migration.
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spelling doaj.art-9cd489c0dce74b8cb5867ac7fc488ae52023-06-28T05:03:39ZengWorld Scientific PublishingAsian Development Review0116-11051996-72412004-01-012102799910.1142/S0116110504000089Economic Growth, Poverty, and Inequality in Indian States in the Pre-reform and Reform PeriodsN.R. BHANUMURTHYARUP MITRAThe paper assesses the impact of economic reforms on poverty incidence by decomposing the change in poverty ratio into growth/mean effect, inequality effect, and population shift effect for the rural and urban areas of 15 major states and at the all-India level. Using National Sample Surveys, data were analyzed for two time periods: (i) 1983 to 1993/4 and (ii) 1993/4 to 1999/2000, broadly representing the pre-reform and reform period, respectively. The growth/mean effect dominates in both periods over the inequality effect and the population shift effect. The growth effect, which is beneficial for poverty reduction, seems to have gone up in the reform period. The adverse inequality effect also fell during the reform period. States with a greater beneficial growth effect in the reform period also show a fall in the magnitude of an adverse population shift effect in the urban areas, i.e., a relatively smaller increase in the incidence of urban poverty caused by rural-urban migration.https://www.worldscientific.com/doi/10.1142/S0116110504000089
spellingShingle N.R. BHANUMURTHY
ARUP MITRA
Economic Growth, Poverty, and Inequality in Indian States in the Pre-reform and Reform Periods
Asian Development Review
title Economic Growth, Poverty, and Inequality in Indian States in the Pre-reform and Reform Periods
title_full Economic Growth, Poverty, and Inequality in Indian States in the Pre-reform and Reform Periods
title_fullStr Economic Growth, Poverty, and Inequality in Indian States in the Pre-reform and Reform Periods
title_full_unstemmed Economic Growth, Poverty, and Inequality in Indian States in the Pre-reform and Reform Periods
title_short Economic Growth, Poverty, and Inequality in Indian States in the Pre-reform and Reform Periods
title_sort economic growth poverty and inequality in indian states in the pre reform and reform periods
url https://www.worldscientific.com/doi/10.1142/S0116110504000089
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