The country of choice is Kazakhstan between 2001 and 2002 valentine’s Day links of london. This is a good natural experiment. Between 1999 and 2002, Kazakhstan enjoyed a period of extraordinary growth estimated at 9.8% between 1999 and 2000, 13.5% between 2000 and 2001 and 9.5% between 2001 and 2002. During the same period, poverty (headcount index valentine’s Day links of london sale) declined significantly from 39% to 24% (World Bank 2004). This led observers to conclude that output growth in this country has been responsible for reducing poverty. Findings are surprising and counter intuitive. Despite the strong covariance between output growth and poverty at the national level, we find no evidence of this covariance or a clear causal link between GDP growth and poverty reduction across the regions of Kazakhstan. Output growth has trickled down to households very little with an average growth in household income of only 0.7% between 2001 and 2002 Links of London sweetie. However, the distribution of such growth has been largely pro-poor explaining the observed reduction in poverty. Therefore, the distribution of household income growth rather than output growth explains poverty reduction.
The paper challenges the conventional wisdom that when output growth and poverty reduction coexist there must be a causal relation between the two sweetie Bracelet. This has important implications for economic theory and economic policies.