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Economic Growth and Poverty Reduction in Sub-Saharan Africa

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Author Info
Toshihiro Ichida
Gary G. Moser
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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Paper provided by International Monetary Fund in its series IMF Working Papers with number 01/112.

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Length: 32 pages
Date of creation: 04 Sep 2001
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Handle: RePEc:imf:imfwpa:01/112

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Keywords: Economic growth ; Sub-Saharan Africa ; Poverty ; Health care ; Education ;

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment Updates and Implications," NBER Working Papers 7911, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Markus Haacker, 2002. "The Economic Consequences of HIV/AIDS in Southern Africa," IMF Working Papers 02/38, International Monetary Fund. [Downloadable!]
  3. Funke, Michael & Strulik, Holger, 2000. "On endogenous growth with physical capital, human capital and product variety," European Economic Review, Elsevier, vol. 44(3), pages 491-515, March. [Downloadable!] (restricted)
    Other versions:
  4. Fields, Gary S, 1989. "Changes in Poverty and Inequality in Developing Countries," World Bank Research Observer, Oxford University Press, vol. 4(2), pages 167-85, July.
  5. Barro, Robert J, 2000. " Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March. [Downloadable!] (restricted)
  6. Bidani, Benu & Ravallion, Martin, 1997. "Decomposing social indicators using distributional data," Journal of Econometrics, Elsevier, vol. 77(1), pages 125-139, March. [Downloadable!] (restricted)
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  7. Demery, Lionel & Squire, Lyn, 1996. "Macroeconomic Adjustment and Poverty in Africa: An Emerging Picture," World Bank Research Observer, Oxford University Press, vol. 11(1), pages 39-59, February.
  8. Philippe Aghion & Eve Caroli & Cecilia Garcia-Penalosa, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1615-1660, December. [Downloadable!] (restricted)
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  9. Robert J. Barro, 1999. "Inequality, Growth, and Investment," NBER Working Papers 7038, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Galor, Oded & Moav, Omer, 1999. "From Physical to Human Capital Accumulation: Inequality in the Process of Development," CEPR Discussion Papers 2307, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  11. Squire, Lyn, 1993. "Fighting Poverty," American Economic Review, American Economic Association, vol. 83(2), pages 377-82, May. [Downloadable!] (restricted)
  12. Jeffrey A. Frankel & David Romer, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June. [Downloadable!] (restricted)
  13. Lipton, Michael & Ravallion, Martin, 1995. "Poverty and policy," Handbook of Development Economics, in: Hollis Chenery† & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 41, pages 2551-2657 Elsevier. [Downloadable!] (restricted)
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  14. Ravallion, Martin & Chen, Shaohua, 1997. "What Can New Survey Data Tell Us about Recent Changes in Distribution and Poverty?," World Bank Economic Review, Oxford University Press, vol. 11(2), pages 357-82, May.
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  15. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March. [Downloadable!] (restricted)
  16. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," World Bank Economic Review, Oxford University Press, vol. 10(3), pages 565-91, September.
  17. 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. [Downloadable!]
  18. Ranis, Gustav & Stewart, Frances & Ramirez, Alejandro, 2000. "Economic Growth and Human Development," World Development, Elsevier, vol. 28(2), pages 197-219, February. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  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. [Downloadable!]
  2. Anne Epaulard, 2003. "Macroeconomic Performance and Poverty Reduction," IMF Working Papers 03/72, International Monetary Fund. [Downloadable!]
  3. Abrego, Lisandro & Ross, Doris C., 2002. "Debt Relief under the HIPC Initiative - Context and Outlook for Debt Sustainability and Resource Flows," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  4. 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. [Downloadable!]
  5. 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. [Downloadable!]
  6. 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. [Downloadable!]
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