Pro-Poor Growth: An Analysis of the Brazilian States between 1995 and 2007

This article analyzes the pro-poor growth in the 27 Brazilian states between 1995 and 2007. Initially, it examines the recent literature about the subject and presents three indicators to quantify the relationship among growth, inequality and poverty. Following, it calculates, through panel data analysis, the growth elasticity of poverty in Brazil and across its states. Finally, it estimates growth incidence curves (GIC) and rates of pro-poor growth (RPPG) for three periods: 1995-2007, 1995-2001 and 2001-2007. The results show that poverty has been rapidly diminishing in Brazil since 2001, but there is still a huge discrepancy among some states and regions. Moreover, there comes up a clear difference between the headcount index and the “deepness” of poverty.