IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2209.14443.html

Government Spending and Money Supply Roles in Alleviating Poverty in Africa

Author

Listed:
  • Gbatsoron Anjande
  • Simeon T Asom
  • Ngutsav Ayila
  • Bridget Ngodoo Mile
  • Victor Ushahemba Ijirshar

Abstract

This study examines the roles of government spending and money supply on alleviating poverty in Africa. The study used 48 Sub-Saharan Africa countries from 2001 to 2017. The study employed one step and two-step system GMM and found that both the procedures have similar results. Different specifications were employed and the model selected was robust, with valid instruments and absence of autocorrelation at the second order. The study revealed that government spending and foreign direct investment have significant negative influence on reducing poverty while money supply has positive influence on the level of poverty in the region. The implication of the finding is that monetary policy tool of money supply has no strong influence in combating the menace of poverty. The study therefore recommends that emphasis should be placed on increasing more of government spending that would impact on the quality of life of the people in the region through multiplier effect, improving the financial system for effective monetary policy and attracting foreign direct inflows through enabling business environment in Africa.

Suggested Citation

  • Gbatsoron Anjande & Simeon T Asom & Ngutsav Ayila & Bridget Ngodoo Mile & Victor Ushahemba Ijirshar, 2022. "Government Spending and Money Supply Roles in Alleviating Poverty in Africa," Papers 2209.14443, arXiv.org.
    • Handle: RePEc:arx:papers:2209.14443
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2209.14443
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gideon G. Goshit & Thaddeaus D. Longduut, 2016. "Indirect Monetary Policy Instruments and Poverty Reduction in Nigeria: An Empirical Evidence from Time Series Data," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(4), pages 86-101, April.
    2. Anderson, Edward & d'Orey, Maria Ana Jalles & Duvendack, Maren & Esposito, Lucio, 2018. "Does Government Spending Affect Income Poverty? A Meta-regression Analysis," World Development, Elsevier, vol. 103(C), pages 60-71.
    3. Cordelia Onyinyechi Omodero, 2019. "Government Sectoral Expenditure and Poverty Alleviation in Nigeria," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(1), pages 80-90, June.
    4. 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.
    5. Rashid Amjad & A.R. Kemal, 1997. "Macroeconomic Policies and their Impact on Poverty Alleviation in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 36(1), pages 39-68.
    6. FARAYIBI, Adesoji & OWURU, Joel, 2016. "Linkage between Fiscal Policy and Poverty Reduction in Nigeria," MPRA Paper 74678, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aliya H. Khan & Ali Shan Azhar, 2003. "Decomposition of Changes in Poverty Measures: Sectoral and Institutional Considerations for the Poverty Reduction Strategy Paper of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(4), pages 879-892.
    2. Imran Sharif Chaudhry & Shahnawaz Malik & Abo ul Hassan, 2009. "The Impact of Socioeconomic and Demographic Variables on Poverty: A Village Study," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 14(1), pages 39-68, Jan-Jun.
    3. Maku Olukayode Emmanuel & Tella Afeez Taiwo & Fagbohun Akinola Christopher, 2020. "Alleviating Poverty in Nigeria: Keynesian Vs Monetary Theory of Poverty," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 30(1), pages 103-120, March.
    4. Chakravarty, Satya R. & Deutsch, Joseph & Silber, Jacques, 2008. "On the Watts Multidimensional Poverty Index and its Decomposition," World Development, Elsevier, vol. 36(6), pages 1067-1077, June.
    5. Khan, Haider A., 1999. "Sectoral Growth and Poverty Alleviation: A Multiplier Decomposition Technique Applied to South Africa," World Development, Elsevier, vol. 27(3), pages 521-530, March.
    6. Zafar Mahmood, 1998. "A Social Sector Strategy for Pakistan," PIDE-Working Papers 1998:163, Pakistan Institute of Development Economics.
    7. 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.
    8. Coady, David & Grosh, Margaret & Hoddinott, John F., 2002. "Targeting outcomes redux," FCND briefs 144, International Food Policy Research Institute (IFPRI).
    9. Ravallion, Martin & Wodon, Quentin, 1997. "Poor areas, or only poor people?," Policy Research Working Paper Series 1798, The World Bank.
    10. Duclos, Jean-Yves & Araar, Abdelkrim & Giles, John, 2010. "Chronic and transient poverty: Measurement and estimation, with evidence from China," Journal of Development Economics, Elsevier, vol. 91(2), pages 266-277, March.
    11. Temple, Jonathan & Ying, Huikang, 2014. "Life During Structural Transformation," CEPR Discussion Papers 10297, C.E.P.R. Discussion Papers.
    12. Muhammad Omer & Sarah Jafri, 2008. "Pro-Poor Growth in Pakistan," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 9(1), pages 51-68, June.
    13. Rashid Amjad, 2012. "Stagflation, the Labor Market Impact, and the Poverty Puzzle in Pakistan: A Preliminary Analysis," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(Special E), pages 51-71, September.
    14. Paul Shaffer, 2002. "Poverty Naturalized: Implications for Gender," Feminist Economics, Taylor & Francis Journals, vol. 8(3), pages 55-75.
    15. Munir Ahmad, 2003. "Agricultural Productivity, Efficiency, and Rural Poverty in Irrigated Pakistan: A Stochastic Production FrontiermAnalysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(3), pages 219-248.
    16. Ravallion, Martin, 1994. "Measuring Social Welfare with and without Poverty Lines," American Economic Review, American Economic Association, vol. 84(2), pages 359-364, May.
    17. Bardhan, Pranab, 1996. "Efficiency, Equity and Poverty Alleviation: Policy Issues in Less Developed Countries," Economic Journal, Royal Economic Society, vol. 106(438), pages 1344-1356, September.
    18. Dante Contreras & Osvaldo Larrañaga, 1999. "Los activos y recursos de la población pobre en América Latina: El caso de Chile," Research Department Publications 3056, Inter-American Development Bank, Research Department.
    19. Mr. Gary G. Moser & Mr. Toshihiro Ichida, 2001. "Economic Growth and Poverty Reduction in Sub-Saharan Africa," IMF Working Papers 2001/112, International Monetary Fund.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2209.14443. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.