Welfare Spending and Quality of Growth in Developing Countries: Evidence from Hopefuls, Contenders and Best Performers

Asongu, Simplice A.

doi:10.2139/ssrn.2623458

Cited by 5 publications

(4 citation statements)

References 61 publications

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“…This narrative is consistent with the substantially documented critical dimension of income-inequality in growth-poverty relationships (Thorbecke, 2013). In essence, because the growth elasticity of poverty is lower than the inequality elasticity of poverty, the poverty-growth nexus is a decreasing function of inequality (Fosu, 2015;Asongu & Nwachukwu, 2016a). The assertion has been consistently verified and confirmed in developing countries 5 .…”

Section: Contemporary Issues In Growth and Inclusive Developmentsupporting

confidence: 80%

Comparative determinants of quality of growth in developing countries

Asongu¹,

Asongu²

2018

IJHD

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This study explores a new dataset in order to present the comparative determinants of growth quality in 93 developing countries for the period 1990-2011. We employ both cross-sectional and panel estimation techniques with contemporary and non-contemporary specifications. The determinants are quite heterogeneous in significance and magnitude with substantial inclinations to specifications and estimation techniques. We present and discuss the findings in increasing magnitude of significance so as to ease comparative readability. We also discuss how specificities in the modelling techniques are relevant for targeting growth quality. The results are timely and relevant for the post-2015 inclusive and sustainable development agenda.

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Section: Contemporary Issues In Growth and Inclusive Developmentsupporting

confidence: 80%

Comparative determinants of quality of growth in developing countries

Asongu¹,

Asongu²

2018

IJHD

Self Cite

View full text Add to dashboard Cite

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“…This narrative is consistent with the substantially documented critical dimension of income-inequality in growth-poverty relationships (Thorbecke, 2013). In essence, because the growth elasticity of poverty is lower than the inequality elasticity of poverty, the poverty-growth nexus is a decreasing function of inequality (Fosu, 2015;Asongu and Nwachukwu, 2016a). The assertion has been consistently verified and confirmed in developing countries 5 .…”

Section: Contemporary Issues In Growth and Inclusive Developmentsupporting

confidence: 80%

Comparative determinants of quality of growth in developing countries

Asongu

2018

IJHD

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“…Beyond relying on economic growth as used in this study, future research can assess whether the established findings withstand empirical scrutiny within the framework of “quality of growth”. In doing this, the quality of growth pointer recommended by Mlachila et al (2017) is being used to advance knowledge on inclusive development in the sub-region (see Asongu and Nwachukwu, 2016, 2017). Second, given the main policy variable used in the study (i.e.…”

Section: Conclusion and Policy Implicationsmentioning

confidence: 99%

Interactive effects of human capital in finance–economic growth nexus in Sub-Saharan Africa

Ibrahim

2018

JES

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Purpose The purpose of this paper is to examine the interactive effect of human capital in financial development–economic growth nexus. Relative to the quantity-based measure of enrolment rates, the main aim was to determine how quality of human capital proxied by pupil–teacher ratio influences the relationship between domestic financial sector development and overall economic growth. Design/methodology/approach Data are obtained from the World Development Indicators of the World Bank for 29 sub-Saharan African (SSA) countries over the period 1980–2014. The analyses were conducted using the system generalised method of moments within the endogenous growth framework while controlling for country-specific and time effects. The author also follows Papke and Wooldridge procedure in examining the long-run estimates of the variables of interest. Findings The key finding is that, while both human capital and financial development unconditionally promotes growth in both the short and long run, results from the interactive terms suggest that, irrespective of the measure of finance, financial sector development largely spurs growth on the back of quality human capital. This finding is also confirmed by the marginal and net effects where the interactive effect of pupil–teacher ratio and indicators of finance are consistently huge relative to the enrolment. Statistically, the results are robust to model specification. Practical implications While it is laudable for SSA countries to increase access to education, it is equally more crucial to increase the supply of teachers at the same time improving on the limited teaching and learning materials. Indeed, there are efforts to develop rather low levels of the financial sector owing to its unconditional growth effects. Beyond the direct benefit of finance, however, higher growth effect of finance is conditioned on the quality level of human capital. The outcome of this study should therefore reignite the recognition of the complementarity role of human capital and finance in economic growth process. Originality/value The study makes significant contributions to existing finance–growth literature in so many ways: first, the auhor extend the literature by empirically examining how different measures of human capital shape the finance–economic growth nexus. Through this the author is able to bring a different perspective in the literature highlighting the role of countries’ human capital stock in mediating the impact of financial deepening on economic growth. Second, the author makes a more systematic attempt to evaluate the relative importance of finance and human capital in growth process while controlling for several ancillary variables.

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Welfare Spending and Quality of Growth in Developing Countries: Evidence from Hopefuls, Contenders and Best Performers

Abstract: The transition from the Millennium Development Goals (MDGs) to Sustainable Development Goals (SDGs) has shifted the policy debate from growth to 'quality of growth' (QG). The

Cited by 5 publications

References 61 publications

Comparative determinants of quality of growth in developing countries

Comparative determinants of quality of growth in developing countries

Comparative determinants of quality of growth in developing countries

Interactive effects of human capital in finance–economic growth nexus in Sub-Saharan Africa

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