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Economic Growth and Poverty Reduction in Sub-Saharan Africa

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  • Gary G. Moser
  • Toshihiro Ichida
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    Abstract

    This study confirms a strong and robust relationship between economic growth and poverty reduction in sub-Saharan Africa. Employing a panel of 46 countries covering the period 1972-97, the analysis finds that a 10 percent increase in per capita GDP leads to a 1 percent increase in life expectancy, a 3-4 percent decline in infant mortality rates, and a 3½-4 percent increase in the rate of gross primary school enrollment. The results are robust for high- and low-income, as well as fast- and slow-growth, countries. The study also finds that quality of growth, civil conflict, HIV/AIDs, civil and institutional freedom, and island economies are important control variables that help explain the variability of poverty across Africa. A country''s latitude is not found to be a significant factor explaining life expectancy or infant mortality rates, though it is a significant factor explaining gross primary school enrollments.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 01/112.

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    Length: 32
    Date of creation: 01 Aug 2001
    Date of revision:
    Handle: RePEc:imf:imfwpa:01/112

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    Web page: http://www.imf.org/external/pubind.htm
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    Related research

    Keywords: Poverty; primary school; primary school enrollment; school enrollment; life expectancy; mortality rates; infant mortality; mortality rate; infant mortality rates; infant mortality rate; gross primary school enrollment; enrollment rates; primary education; birth; primary school enrollments; improvements in life expectancy; census; life expectancy at birth; enrollment rate; school enrollments; educational attainment; education services; health education; household surveys; primary education enrollment; live birth; higher enrollment; number of deaths; annual inflation rate;

    References

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    1. Lipton, Michael & Ravallion, Martin, 1993. "Poverty and policy," Policy Research Working Paper Series 1130, The World Bank.
    2. Bidani, Benu & Ravallion, Martin, 1997. "Decomposing social indicators using distributional data," Journal of Econometrics, Elsevier, vol. 77(1), pages 125-139, March.
    3. Klaus Deininger & Lyn Squire, 1996. "A New Data Set Measuring Income Inequality," CEMA Working Papers 512, China Economics and Management Academy, Central University of Finance and Economics.
    4. Oded Galor & Omer Moav, 2004. "From Physical to Human Capital Accumulation: Inequality and the Process of Development," GE, Growth, Math methods 0410005, EconWPA.
    5. David Fielding, 2001. "Why is Africa so poor? A structural model of economic development and income inequality," CSAE Working Paper Series 2001-05, Centre for the Study of African Economies, University of Oxford.
    6. Squire, Lyn, 1993. "Fighting Poverty," American Economic Review, American Economic Association, vol. 83(2), pages 377-82, May.
    7. Demery, Lionel & Squire, Lyn, 1996. "Macroeconomic Adjustment and Poverty in Africa: An Emerging Picture," World Bank Research Observer, World Bank Group, vol. 11(1), pages 39-59, February.
    8. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
    9. Michael Funke & Holger Strulik, 2000. "On Endogenous Growth with Physical Capital, Human Capital and Product Variety," Quantitative Macroeconomics Working Papers 20004, Hamburg University, Department of Economics.
    10. Ravallion, Martin & Chen, Shaohua, 1997. "What Can New Survey Data Tell Us about Recent Changes in Distribution and Poverty?," World Bank Economic Review, World Bank Group, vol. 11(2), pages 357-82, May.
    11. Ranis, Gustav & Stewart, Frances & Ramirez, Alejandro, 2000. "Economic Growth and Human Development," World Development, Elsevier, vol. 28(2), pages 197-219, February.
    12. Garcia-Penalosa, Cecilia & Aghion, Philippe & Caroli, Eve, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Economics Papers from University Paris Dauphine 123456789/10091, Paris Dauphine University.
    13. Dhaneshwar Ghura & Michael T. Hadjimichael, 1996. "Growth in Sub-Saharan Africa," IMF Staff Papers, Palgrave Macmillan, vol. 43(3), pages 605-634, September.
    14. Fields, Gary S, 1989. "Changes in Poverty and Inequality in Developing Countries," World Bank Research Observer, World Bank Group, vol. 4(2), pages 167-85, July.
    15. Hongyi Li & Lyn Squire & Tao Zhang & Heng-fu Zou, 1999. "A Data Set on Income Distribution," CEMA Working Papers 575, China Economics and Management Academy, Central University of Finance and Economics.
    16. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
    17. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-63, July.
    18. Bruno, Michael & Ravallion, Martin & Squire, Lyn, 1996. "Equity and growth in developing countries : old and new perspectives on the policy issues," Policy Research Working Paper Series 1563, The World Bank.
    19. Markus Haacker, 2002. "The Economic Consequences of HIV/AIDS in Southern Africa," IMF Working Papers 02/38, International Monetary Fund.
    20. Barro, Robert J, 2000. " Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
    21. Robert J. Barro, 1999. "Inequality, Growth, and Investment," NBER Working Papers 7038, National Bureau of Economic Research, Inc.
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    Citations

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    Cited by:
    1. Sue Bowden & Domna Maria Michailidou & Alvaro Pereira, 2008. "Chasing mosquitoes: An exploration of the relationship between economic growth, poverty and the elimination of malaria in Southern Europe in the 20th century," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(8), pages 1080-1106.
    2. Peter Nunnenkamp, 2002. "Why Economic Growth Trends Differ So Much Across Developing Countries. The Globalization Debate and Its Relevance to Pakistan," Kiel Working Papers 1091, Kiel Institute for the World Economy.
    3. Bigsten, Arne & Kebede, Bereket & Shimeles, Abebe & Taddesse , Mekonnen, 2002. "Growth and Poverty Reduction in Ethiopia: Evidence from Household Panel Surveys," Working Papers in Economics 65, University of Gothenburg, Department of Economics.
    4. Lahimer, Noomen, 2009. "La contribution des investissements directs étrangers à la réduction de la pauvreté en Afrique subsaharienne," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/1167 edited by Goaied, Mohamed & Bienaymé, Alain, November.
    5. Anne Epaulard, 2003. "Macroeconomic Performance and Poverty Reduction," IMF Working Papers 03/72, International Monetary Fund.
    6. Samuel Fambon, 2005. "Croissance économique, pauvreté et inégalité des revenus au Cameroun," Revue d’économie du développement, De Boeck Université, vol. 19(1), pages 91-122.
    7. Abrego, Lisandro & Ross, Doris C., 2002. "Debt Relief under the HIPC Initiative - Context and Outlook for Debt Sustainability and Resource Flows," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    8. Paulo Silva Lopes, 2002. "A Comparative Analysis of Government Social Spending Indicators and their Correlation with Social Outcomes in Sub-Saharan Africa," IMF Working Papers 02/176, International Monetary Fund.

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