To "end poverty in all its forms everywhere" and "reduce inequality within and among countries", this study aligns with the 2030 Sustainable Development Goals 1 and 10. It uniquely contributes to the growth-poverty-inequality discourse by using per capita consumption expenditure growth (poverty), Gini index (inequality) and GDP growth (economic growth). It is a comparative analysis of 58 Sub-Saharan Africa (SSA) and Latin American (LAC) countries (from 2000 to 2015) to determine whether economic growth reduces the incidence of poverty and if its interaction with income inequality enhances or alters its impact on poverty. Consistent findings from a multianalytical approach using pooled ordinary least squares, fixed effects and system GMM reveal that: (1) economic growth exhibit poverty-reduction properties; (2) the growth rate of inequality intensifies poverty, (3) inequality aggravates the impact of growth on poverty, and (4) the growth-poverty-inequality trilemma differs across income groups and regional samples. Furthermore, this study submits that the interaction of income inequality dampens the positive impact of economic growth on the incidence of poverty and supports the argument that the extent of inequality lessens the effect of inclusiveness. Hence, income inequality is a crucial determinant of poverty. Policy implications are discussed.
Foreign direct investment (FDI) is regarded as a critical determinant in the concept of development for Africa. However, institutional quality in the recipient countries is considered an essential factor that can be used to drive FDI flows inward. The study aims to establish the effect of institutions' challenges on the FDI inflow and how it impacts on economic development for host selected countries in sub-Saharan Africa (SSA). The study employed pooled data for 30 SSA countries for the period within the years 2000 and 2018. The analysis method used was the fixed and random effect regression model utilized to estimate the effect of foreign capital on economic development with considerations for the quality of institutions for developing SSA sub-region of Africa. This study reveals that foreign capital inflow is crucial for economic development in the SSA sub-region of Africa. Quality of institutions as determining factors also affected the level of inflow of FDI to the host SSA sub-region, which resulted in the underutilization of domestic resources and hence abnormal development of domestic sector investment. The study recommends that the government of host SSA subregion needs to consider the degree of institutional quality to encourage further FDI inflows. To afford the maximal benefit of FDI in the development of the host domestic sector and to guard the industry that foreign investment flows into carefully. It is expedient, thereby, that the domestic investment is enhanced to ensure that dependence on foreign capital inflow continues to decline as income increases. Until domestic investments are sufficient to generate advancement in technology and desired economic development for the selected countries, in the SSA sub-region.
This study examines the relationship between technology, human capital and economic growth and also attempts to establish their implications on knowledge based economy in Nigeria. The data used for the study are from secondary sources while the new growth model was also adopted. The dependent variable in the model is the level of real output while the explanatory variables are gross capital formation and government expenditure on education. The result of the causality test shows that is a uni-directional relationship running from gross capital formation and real output, human capital formation and real output growths do not Granger cause each other while causality runs from human capital to capital formation and vice versa. The implication of the result; the increase in economic growth has not improve the rate of capital formation in Nigeria. The study concluded that Nigeria has been slow to identify the strands of global knowledge due to the following: Weak institutions; limited awareness and disincentives preventing them from taking the root to the knowledge and information based-economy. Based on the findings the study recommended; strategies in which education can be incorporated into the growth system. Research and development should be encouraged as well and polices that promote output through savings.
This study contributes to the literature on inflation dynamics by examining whether internal or external factors drive inflationary pressure in Nigeria. Using the annual time series data from 1981 to 2017 and applying Johansen cointegration analysis, the vector error correction mechanism and the impulse response function, the study reveals some compelling evidence to suggest that external forces are responsible for inflationary pressure in Nigeria. The results, amongst others, reveal that: external drivers – exchange rate, imported inflation and openness – induce a positive and direct relation to inflation. This is because a percentage change in these variables results in an increase in inflation of 0.49%, 0.47% and 4.28%, respectively, on average, ceteris paribus; the internal drivers – government expenditures, net food exports and lending interest rate – dampen inflation by 0.48%, 1.70% and 0.02%, respectively, on average, ceteris paribus; there is evidence of cointegration indicating that 57.48% of short-run errors will be corrected in the long run; imported inflation contributes to a deviation of about 33% deviation in the first five periods and accounts for cumulative average of over 100% deviation in inflation. Policy implications are discussed.
This study utilized secondary data sourced from the World Development Indicators (WDI), International Labour Organisation (ILO), United Nations Educational, Scientific and Cultural Organization (UNESCO), and the System Generalized Method of Moments (SGMM) econometric technique was used to analyze the data. Sustainable Development Goal 1, a proxy for poverty, was used as the dependent variable, while agriculture value added, employment in the agricultural sector, inequality, literacy rate, population growth rate, and gross domestic savings were the explanatory variables. The study found that both agriculture value added and employment in the agricultural sector were statistically significant in explaining poverty and negatively related to poverty in the Economic Community of West African States (ECOWAS) subregion. Therefore, based on the findings, the study recommends that the governments of ECOWAS countries should focus more on agriculture in order to become exporters of cash crops to boost their economies and increase savings that can be used to alleviate and eliminate poverty among the people.
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