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

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  • Michael Grimm
  • Isabel Günther
Abstract
Previous poverty assessments of Burkina Faso neglected some important methodological issues. They were therefore misleading and led to the so-called 'Burkinabè Growth--Poverty Paradox', i.e., increasing poverty despite sustained macro-economic growth and constant inequality. We estimate that poverty significantly decreased between 1994 and 2003, 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 caused by a severe drought and the devaluation of the CFA Franc, which led to a profound deterioration of the purchasing power of the poor, an issue, which was also overseen by previous studies. Copyright 2007, Oxford University Press.

Suggested Citation

  • Michael Grimm & Isabel Günther, 2007. "Growth and Poverty in Burkina Faso: A Reassessment of the Paradox," Journal of African Economies, Centre for the Study of African Economies, vol. 16(1), pages 70-101, January.
    • Handle: RePEc:oup:jafrec:v:16:y:2007:i:1:p:70-101
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    References listed on IDEAS

    as
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    More about this item

    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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