Economic Growth and Extreme Poverty in Sub-Saharan African Countries: Non-Linearity and Governance Threshold Effect

Saidi, Yosra; Labidi, Mohamed Ali; Ochi, Anis

doi:10.1007/s13132-023-01421-7

Cited by 4 publications

(2 citation statements)

References 96 publications

(151 reference statements)

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“…Our findings are similar to the results presented by Ochi et al (2023) and Saidi et al (2023), who found that poverty decreases with good governance. The evolution of inequalities depends on both the demand for labor and the structure of labor supply, and particularly on the characteristics of the education system.…”

Section: Dynamic Panel Threshold Estimationsupporting

confidence: 92%

“…They find that inclusive growth reduces the negative impact of income inequality on poverty. Saidi et al (2023) showed that, in sub-Saharan Africa, the economic growth would begin toreduce extreme poverty once governance quality reaches some threshold level. They consider that high levels of economic growth are crucial for poverty reduction.…”

Section: Introductionmentioning

confidence: 99%

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Inequality and the impact of growth on poverty in sub‐Saharan Africa: A GMM estimator in a dynamic panel threshold model

Ochi

2023

Regional Science Policy & Practice

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The need for a good understanding of the relationship among poverty, inequality, and economic growth has become a significant concern in poor countries. This paper, therefore, empirically analyzes the triangular relationship among extreme poverty, income inequality, and economic growth for the 45 middle and low‐income sub‐Saharan African countries over the period 2010–2021. This study examines the effect of economic growth in extreme poverty reduction, with emphasis on the role of income inequality. We found that the nexus between these three variables is nonlinear. Our empirical results show that the economic growth begins to reduce extreme poverty when income inequality is at or below a threshold of 35.28 for the low‐income countries and 45.15 for the middle‐income countries. Meanwhile, the results indicate that there is no relationship between economic growth and extreme poverty above the inequality threshold levels of 35.28 and 45.15 for the low‐income and the middle‐income countries, respectively. On the basis of the findings, this study proposes several policy recommendations.

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Section: Dynamic Panel Threshold Estimationsupporting

confidence: 92%

Section: Introductionmentioning

confidence: 99%

Inequality and the impact of growth on poverty in sub‐Saharan Africa: A GMM estimator in a dynamic panel threshold model

Ochi

2023

Regional Science Policy & Practice

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Effect of Foreign Direct Investment (FDI) on the Economic Growth of Somalia: ARDL Bounds Test

Mohamoud Mohamed,

Özarslan Doğan

2024

Anasay

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It is a known fact that today, with the influence of globalization, financial borders between countries have disappeared. As borders remain, the importance of foreign direct investments also increases. Because foreign direct investments are a great opportunity for economic growth and development, especially for developing economies. In this direction the aim of this study is to empirically examine the impact of foreign direct investments on economic growth in Somalia between 1970 and 2022 with the help of the ARDL bounds test. According to the estimation findings, there is a positive and significant relationship between foreign direct investments and economic growth in Somalia in the specified period. The study also examined variables such as population growth, trade balance, exchange rate and inflation, which are thought to have an impact on economic growth. Accordingly, while population growth and trade balance were found to have a positive effect on economic growth, the effect of exchange rate and inflation variables on economic growth was found to be negative. However, the coefficients are statistically significant. For underdeveloped or developing countries with insufficient domestic savings, economic stability is very important in attracting foreign direct investments to the country. At this point, countries need to make efforts to stabilize their macroeconomic indicators.

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An Empirical Investigation on Institutional Quality, Growth, and Poverty Alleviation in Nigeria

Idowu,

Idowu

2024

Examining Corruption and the Sustainable Development Goals

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The paradox of institutional quality, growth and poverty in Nigeria cannot be overemphasized. Over the years Nigeria has witnessed the implementation of various poverty alleviation programmes reflecting the evolving strategies and approaches to tackle the menace in Nigeria. However, the bane of the problem is associated with governance failure. This study hence interrogated the interrelationship among institutional quality, growth, and poverty, and the effects of institutional quality on poverty and growth in Nigeria. The study used auto-regressive distributive lags to investigate the effects of institutional quality on poverty and growth. Findings from the study revealed that there is a bi-causal relationship between poverty and growth in Nigeria for the period under study. While there was no long run relationship between institutional quality and poverty in Nigeria, there was a significant positive impact on both poverty and growth in the short run. Hence, poverty alleviation programmes and growth induced policies should be implemented within the framework of good governance.

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Economic Growth and Extreme Poverty in Sub-Saharan African Countries: Non-Linearity and Governance Threshold Effect

Cited by 4 publications

References 96 publications

Inequality and the impact of growth on poverty in sub‐Saharan Africa: A GMM estimator in a dynamic panel threshold model

Inequality and the impact of growth on poverty in sub‐Saharan Africa: A GMM estimator in a dynamic panel threshold model

Effect of Foreign Direct Investment (FDI) on the Economic Growth of Somalia: ARDL Bounds Test

An Empirical Investigation on Institutional Quality, Growth, and Poverty Alleviation in Nigeria

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