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

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  • Asongu, Simplice
  • Kodila-Tedika, Oasis

Abstract

Tebaldi & Mohan (2010, JDS) have established an empirical nexus between institutions and monetary poverty. We first, reflect their findings in 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 income-average as opposed to income-inequality. We discuss the confirmed findings in light of implications to: (1) debates over preferences in economic rights; (2) China’s development/outlook; (3) the Chinese model versus sustainable development; (4) the Fosu conjectures; (5) Piketty’s & Kuznets’ celebrated literatures and (6) future research to ascertain the inequality mechanism.

Suggested Citation

  • Asongu, Simplice & Kodila-Tedika, Oasis, 2014. "Institutions and Poverty: A Critical Comment Based on Evolving Currents and Debates," MPRA Paper 64461, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:64461
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    References listed on IDEAS

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    Cited by:

    1. Asongu, Simplice & Kodila-Tedika, Oasis, 2015. "Is Poverty in the African DNA (Gene)?," MPRA Paper 67849, University Library of Munich, Germany.
    2. Simplice Asongu & Ivo Leke, 2017. "External Flows and Inclusive Human Development in Sub-Saharan Africa," Working Papers 17/058, African Governance and Development Institute..
    3. Oasis Kodila-Tedika & Simplice Asongu, 2015. "Women in Power and Power of Women: the Liberian Experience," Working Papers 15/021, African Governance and Development Institute..
    4. repec:bla:sajeco:v:85:y:2017:i:4:p:533-552 is not listed on IDEAS
    5. Simplice A. Asongu & Jacinta C. Nwachukwu, 2016. "Rational Asymmetric Development, Piketty and Poverty in Africa," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 13(2), pages 221-246, December.
    6. Asongu, Simplice, 2015. "Rational Asymmetric Development: Transfer Mispricing and Sub-Saharan Africa’s Extreme Poverty Tragedy," MPRA Paper 71175, University Library of Munich, Germany.
    7. Simplice Asongu, 2015. "Rational Asymmetric Development: Transfer Pricing and Sub-Saharan Africa’s Extreme Poverty Tragedy," Working Papers 15/017, African Governance and Development Institute..
    8. Kodila-Tedika, Oasis & Mulunda Kabange, Martin, 2018. "Constitutional instability and Poverty: Some Empirical Evidence," MPRA Paper 84501, University Library of Munich, Germany.
    9. Simplice Asongu, 2015. "Rational Asymmetric Development, Piketty and the Spirit of Poverty in Africa," Working Papers 15/006, African Governance and Development Institute..
    10. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2017. "Quality of Growth Empirics: Comparative gaps, benchmarking and policy syndromes," Journal of Policy Modeling, Elsevier, vol. 39(5), pages 861-882.
    11. Abel Kinyondo & Riccardo Pelizzo, 2018. "Growth, Employment, Poverty and Inequality in Tanzania," Working Papers 18/001, African Governance and Development Institute..

    More about this item

    Keywords

    poverty; institutions;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • 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
    • P14 - Economic Systems - - Capitalist Systems - - - Property Rights
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism

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