Leite, Phillippe G.Ferreira, Francisco H.G.Ravallion, Martin2012-06-112012-06-112007-12https://hdl.handle.net/10986/7621Brazil's slow pace of poverty reduction over the last two decades reflects both low growth and a low growth elasticity of poverty reduction. Using GDP data disaggregated by state and sector for a twenty-year period, this paper finds considerable variation in the poverty-reducing effectiveness of growth-across sectors, across space, and over time. Growth in the services sector was substantially more poverty-reducing than was growth in either agriculture or industry. Growth in industry had very different effects on poverty across different states and its impact varied with initial conditions related to human development and worker empowerment. The determinants of poverty reduction changed around 1994: positive growth rates and a greater (absolute) elasticity with respect to agricultural growth contributed to faster poverty reduction. But because there was so little of it, economic growth played a relatively small role in accounting for Brazil's poverty reduction between 1985 and 2004. The taming of hyperinflation (in 1994) and substantial expansions in social security and social assistance transfers, beginning in 1988, accounted for a larger share of the overall reduction in poverty.CC BY 3.0 IGOABSOLUTE POVERTYABSOLUTE VALUEACCESS TO ELECTRICITYADULT POPULATIONAGGREGATE GROWTHAGGREGATE LEVELAGRICULTURAL GROWTHAGRICULTURAL SECTORAGRICULTURAL WORKERSANNUAL GROWTHANNUAL GROWTH RATEASSET DISTRIBUTIONAVERAGE ANNUALAVERAGE GROWTHAVERAGE INCOMEBUDGET DEFICITSCALORIES PER DAYCASH TRANSFER PROGRAMSCHANGES IN POVERTYCONSUMER PRICE INDEXCONSUMPTION EXPENDITURECORRELATES OF POVERTYCOUNTERFACTUALCOUNTRY DATACROSS-COUNTRY COMPARISONSCROSS-COUNTRY DATACUMULATIVE DISTRIBUTIONCUMULATIVE DISTRIBUTION FUNCTIONDECLINE IN POVERTYDESCRIPTIVE STATISTICSDETERMINANTS OF POVERTYDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPING WORLDDEVELOPMENT ECONOMICSDEVELOPMENT REPORTDEVELOPMENT RESEARCHDISTRIBUTIONAL EFFECTDISTRIBUTIONAL EFFECTSECONOMETRIC ANALYSISECONOMIC ACTIVITIESECONOMIC ACTIVITYECONOMIC CONTRACTIONECONOMIC GROWTHECONOMIC INEQUALITYECONOMIC REFORMSECONOMIC STAGNATIONECONOMICS LETTERSELDERLYERROR TERMESTIMATED COEFFICIENTESTIMATED COEFFICIENTSESTIMATED ELASTICITYEXCHANGE RATEEXCHANGE RATE REGIMEEXPLAINING CHANGESEXPLANATORY VARIABLESFAMILY CONSUMPTIONFARM PRODUCTIVITYFIXED EFFECTSFOOD BASKETGINI COEFFICIENTGINI INDEXGOVERNMENT POLICIESGROSS DOMESTIC PRODUCTGROWING ECONOMYGROWTH COMPONENTGROWTH DATAGROWTH EFFECTGROWTH ELASTICITYGROWTH PERFORMANCEGROWTH PRO-POORGROWTH PROCESSGROWTH RATEGROWTH RATESGROWTH SPELLSHIGH INEQUALITYHIGH INFLATIONHOUSEHOLD INCOMEHOUSEHOLD INCOMESHOUSEHOLD PER CAPITA INCOMEHOUSEHOLD SIZEHOUSEHOLD SURVEYHOUSEHOLD SURVEYSHUMAN CAPITALHUMAN CAPITAL LEVELSHUMAN DEVELOPMENTILLITERACYILLITERACY RATEIMPACT ON POVERTYINCOMEINCOME DISTRIBUTIONINCOME DISTRIBUTIONSINCOME GROWTHINCOME INEQUALITYINCOME REDISTRIBUTIONINDEPENDENT VARIABLESINDIVIDUAL WELFAREINDUSTRIAL SECTORINEQUALITYINEQUALITY CHANGESINEQUALITY CONSTANTINEQUALITY LEVELSINEQUALITY MEASUREINEQUALITY REDUCTIONINFANTINFANT MORTALITYINFANT MORTALITY RATEINFANT MORTALITY RATESINFLATION RATEINSURANCELABOR FORCELIVESTOCK PRODUCTIONLIVING STANDARDSLONG RUNMACROECONOMIC CONDITIONSMACROECONOMIC INSTABILITYMACROECONOMIC STABILIZATIONMEAN CONSUMPTIONMEAN INCOMEMEAN INCOMESMEASUREMENT ERRORMEASUREMENT ERRORSNATIONAL ACCOUNTSNATIONAL POVERTYNATIONAL POVERTY LINENEGATIVE EFFECT0 HYPOTHESISOUTPUT GROWTHPENSIONSPOINT ESTIMATEPOINT ESTIMATESPOLICY DECISIONSPOLICY ENVIRONMENTPOLICY ISSUESPOLICY REFORMPOLICY REFORMSPOLICY REGIMEPOLICY RESEARCHPOLICY RESEARCH WORKING PAPERPOLITICAL ECONOMYPOLITICAL PARTICIPATIONPOLITICAL POWERPOORPOOR HOUSEHOLDSPOSITIVE GROWTHPOVERTY CHANGESPOVERTY DECLINESPOVERTY DYNAMICSPOVERTY GAPPOVERTY GAP INDEXPOVERTY HEADCOUNT INDEXPOVERTY IMPACTPOVERTY IMPACT OF GROWTHPOVERTY INCIDENCEPOVERTY MEASUREPOVERTY MEASURESPOVERTY PROFILEPOVERTY RATEPOVERTY RATESPOVERTY REDUCINGPOVERTY REDUCTIONPOVERTY-REDUCING GROWTHPOVERTY-REDUCING IMPACTPRICE STABILIZATIONPRIVATE CONSUMPTIONPRO-POORPRO-POOR GROWTHPROGRESSPUBLIC EXPENDITUREPUBLIC EXPENDITURESPUBLIC POLICYPUBLIC SERVICESPUBLIC SPENDINGPURCHASING POWERPURCHASING POWER PARITYRAINFORESTRATE OF GROWTHRECREATIONREDUCING POVERTYREDUCTION IN POVERTYREGIONAL DIFFERENCESRESPECTRESPONSES TO GROWTHRURALRURAL AREASSANITATIONSCHOOLINGSECTORAL COMPOSITIONSIGNIFICANT EFFECTSIGNIFICANT IMPACTSOCIAL ASSISTANCESOCIAL EXPENDITURESSOCIAL POLICYSOCIAL PROGRAMSSOCIAL PROTECTIONSOCIAL SECURITYSOCIAL SERVICESSOCIAL SPENDINGSOCIAL WELFARESTATE-OWNED ENTERPRISESTRADE LIBERALIZATIONUNIONSURBANIZATIONWELFARE INDICATORWorld Bank10.1596/1813-9450-4431