The impact of governance on poverty reduction : Are there regional differences in Sub-saharan Africa ?

Aloui, Zouhaier (2019): The impact of governance on poverty reduction : Are there regional differences in Sub-saharan Africa ?

Abstract

This article attempts to explore the relationship between governance and poverty reduction. Throughout this work, we have tried to clearly answer the following questions: What is the effect of governance indicators on poverty reduction in sub-Saharan Africa? In this framework, the basic assumption was the existence of a direct effect of governance on poverty reduction. The study of this hypothesis was formulated in a static model applied to the data available on the countries of sub-Saharan Africa between 1996-2016. The results of our regressions show that governance indicators have a positive and negative effect on poverty reduction in sub-Saharan African countries. This result implies that governance factors play an important role in poverty and the primary role of government effectiveness. The relationship between governance and poverty reduction varies by stage of development. But notes significant differences between African regions. This supports our contention that governance has more impact on poverty reduction in the poorer regions than in rich sub-Saharan Africa. For example, the relationship between government effectiveness and poverty reduction is positive and significant for Central and Eastern Africa, it is not significant in Southern Africa is negative and significant in west Africa.

• Item Type: MPRA Paper
• Language: English
• Keywords: Governance Indicators, Poverty, Regional Economic Integration, Africa.
• Subjects: F - International Economics > F6 - Economic Impacts of Globalization > F63 - Economic Development; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I32 - Measurement and Analysis of Poverty; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance

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