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Estimating the relationship between governance, economic growth, inequality and poverty

Author

Listed:
  • Mohammed TOUITOU

    (University of Algiers, Algeria)

  • Ahmed BOUDEGHDEGH

    (University of Jijel, Algeria)

Abstract

The main purpose of this paper is to estimate the relationship between governance, economic growth, inequality and poverty for 81 countries for the period 2000-2016. We divided the countries into three groups, low-income, lower-middle-income and upper-middle-income countries. We used a structural model with simultaneous equations on Panel data. Our results show that the positive or negative impact of governance on the growth-inequality-poverty triangle changes depending on the dimension of governance taken into account and the sample being studied. Given the negative relationship between inequality and growth, democracy should a second time positively affect economic growth through the reduction of inequalities.

Suggested Citation

  • Mohammed TOUITOU & Ahmed BOUDEGHDEGH, 2021. "Estimating the relationship between governance, economic growth, inequality and poverty," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(3(628), A), pages 115-128, Autumn.
    • Handle: RePEc:agr:journl:v:3(628):y:2021:i:3(628):p:115-128
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    References listed on IDEAS

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