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Growth and Poverty in Burkina Faso: A Reassessment of the Paradox

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Listed:
  • Michael Grimm
  • Isabel Günther
Abstract
Previous poverty assessments for Burkina Faso were due to the neglect of some important methodological issues misleading and led to the so-called 'Burkinabè Growth-Poverty-Paradox', i.e. relatively sustained macro-economic growth, but almost constant poverty. We estimate that poverty significantly decreased between 1994 and 2003 at least on the national level, i.e. growth was in contrast to what previous poverty estimates suggested 'pro-poor'. However, we also demonstrate that between 1994 and 1998 poverty indeed increased despite a good macro-economic performance. This was due to a severe drought and a resulting profound deterioration of the purchasing power of the poor; an issue which was also overseen by previous studies.

Suggested Citation

  • Michael Grimm & Isabel Günther, 2005. "Growth and Poverty in Burkina Faso: A Reassessment of the Paradox," Discussion Papers of DIW Berlin 482, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp482
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Poverty; Pro-poor growth; Differential inflation; Sub-Saharan Africa; Burkina Faso;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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