India experienced high economic growth in the 1990s. Some earlier studies, which attempted to identify the influence of growth on poverty dynamics in the country by including growth variables among the factors affecting the incidence of and transition from poverty, concluded that growth is not uniformly associated with poverty reduction. While panel household data was used to identify the factors influencing the incidence and mobility of poverty, the changes in the influence of these factors over time were not analysed. This paper examines whether there has been change in the influence of factors such as village level infrastructure, household size and composition, and economic growth on poverty dynamics in different periods of time. The impact of a number of factors changes over time implying that the strategies for poverty reduction would have to take into account the changing economic environment. The paper further presents an analysis of the pattern of per capita expenditure over time for the same set households in order to analyse the implications of these trends on poverty reduction.
CPRC and Indian Institute of Public Administration, 44 pp.