Can inclusive growth reduce multidimensional poverty in Sub-Saharan Africa?

Poverty is a major concern for policymakers in Sub-Saharan Africa, as this region alone accounts for more than half of the world’s poor. This research analyses the effect of inclusive growth on multidimensional poverty in a sample of 33 Sub-Saharan African countries over the period 1996–2019. The results, derived from the first-difference estimator, indicate that inclusive growth reduces multidimensional poverty, as measured by the index and the incidence of multidimensional poverty. These findings remain robust to the inclusion of additional control variables and are further confirmed by the use of the random-effects panel instrumental variable estimator as an alternative econometric approach. The findings of this research suggest to policymakers that fostering inclusive growth is a powerful tool for reducing multidimensional poverty in Sub-Saharan Africa. To achieve this, public authorities may implement policies aimed not only at boosting worker productivity, but also at promoting access to the labour market for the poorest segments of the population.