CIRJE-F-235 "Immiserizing Growth: An Empirical Evaluation"
Author Name Sawada, Yasuyuki
Date July 2003
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Remarks Subsequently published in Applied Economics 41(13), 1613-1620, 2009
Abstract

This paper examines the empirical validity of immiserizing growth in a consistent manner. A straightforward test for immiserizing growth is constructed by using the revealed preference framework of welfare evaluation, together with macroeconomic growth data. We identify 34 episodes of immiserizing growth in the post-war world economy, mostly in Africa and Latin America. This suggests the existence of large distortions that outweigh the gains from growth.