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State Capacity, Agricultural Productivity and Poverty Reduction in African Countries

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  • Abdoul¡¯ Ganiou Mijiyawa and Djoulassi K. Oloufade

    (World Bank and Central Bank of West African States)

Abstract

We analyze the effect of state capacity on poverty in Africa. We consider two proxy variables for state capacity: the government effectiveness index, capturing administrative capacity, and the political stability index, a proxy for coercive capacity. Using the system-GMM technique with four-year average panel data from 53 African countries over the period 1995-2014, we find that each of the state capacity variable significantly reduces poverty rate. However, administrative capacity appears to be the most important aspect of state capacity for poverty reduction. The results also suggest that cereal yield, a proxy for agricultural productivity, would be a channel through which state capacity affects poverty in Africa.

Suggested Citation

  • Abdoul¡¯ Ganiou Mijiyawa and Djoulassi K. Oloufade, 2019. "State Capacity, Agricultural Productivity and Poverty Reduction in African Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 44(1), pages 39-67, March.
    • Handle: RePEc:jed:journl:v:44:y:2019:i:1:p:39-67
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    More about this item

    Keywords

    State Capacity; Poverty; Agricultural Productivity; Africa;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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