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Institutions and Poverty: A Critical Comment Based on Evolving Currents and Debates

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  • Simplice A. Asongu

    (Yaoundé/Cameroon)

  • Oasis Kodila-Tedika

    (Kinshasa, Democratic Republic of Congo)

Abstract

Tebaldi and Mohan (2010, JDS) have established an empirical relationship between institutions and monetary poverty. We first, reflect their findings in the light of recent development models, debates and currents in post-2010 literature. We then re-examine their results with a non-monetary and multidimensional poverty indicator first published in 2010. Our findings confirm the negative relationship and the nexus disappears with control for average income. Hence, confirming the conclusions of the underlying study that institutions could have an indirect effect on multidimensional poverty. In other words, the poverty eradication effect of institutions is through average income as opposed to income inequality. We discuss how the findings provide insights into: (i) the Chinese model versus sustainable development; (ii) debates over preferences in economic rights; (iii) China’s development and outlook; (iv) the Fosu conjectures and (v) Piketty’s and Kuznets’ literatures.

Suggested Citation

  • Simplice A. Asongu & Oasis Kodila-Tedika, 2014. "Institutions and Poverty: A Critical Comment Based on Evolving Currents and Debates," Research Africa Network Working Papers 14/031, Research Africa Network (RAN).
  • Handle: RePEc:abh:wpaper:14/031
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    More about this item

    Keywords

    poverty; institutions; development;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • P14 - Economic Systems - - Capitalist Systems - - - Property Rights
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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