Is the Growth Pro-Poor in Odisha Since 1990’s?

Abstract

This study examines whether the economic growth in Odisha is pro-poor since the 1990s by applying, Pro-poor Growth Index (PGI), Poverty Equivalent Growth (PEG), Growth Incidence Curve (GIC) methods and using the NSSO 1993-1994, 2004-2005 and 2011-2012 Consumer Expenditure Survey. The change in poverty has been decomposed into growth in income (MPCE) and redistribution to look into the pro-poorness effect of growth. The results show that the slower rise in MPCE and faster increase in inequality, which offset the poverty reduction in the 1st period, causes a slow reduction in poverty. The faster reduction in inequality in the 2nd period with an increase in real MPCE has resulted in more rapid reduction in poverty in the state. Throughout the analysis, the growth effect of poverty reduction outweighs the inequality effect, causing a reduction in poverty in Odisha. The PGI, PEG and GIC show that the 2nd period in Odisha is pro-poor.