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Have economic growth and the quality of governance contributed to poverty reduction and improved well-being in African countries?

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  • Aloui, Zouhaier

Abstract

This study examines the impact of economic growth and quality of governance on poverty and well-being in African countries for the period 1996-2016. The static panel estimation method is used to estimate the equations. Although economic growth does not seem to have an effect on poverty, the results confirm that this growth leads to improved well-being in West Africa. Although corruption and the quality of regulation have been found to increase poverty, improving government efficiency appears to reduce levels of poverty. Similarly, the results also show that corruption and government effectiveness are associated with a deterioration of welfare, but the rule of law and the way and responsibility seem to improve well-being. This study shows that governance indicators in African countries address the issues of poverty and improving well-being. Economic growth has been cited as one of the main drivers of poverty reduction, and the persistent problem of poverty in African countries has raised doubts about the effectiveness of economic growth. Recent evidence has shown that growth in Africa has been accompanied by an increase in poverty. Increasing poverty can slow the improvement of well-being and create social unrest. The quality of governance can also influence the extent to which economic growth reduces poverty. This study shows that improvements in these institutional (government efficiency) and legal (rule of law) measures tend to decrease levels of poverty and increase well-being.

Suggested Citation

  • Aloui, Zouhaier, 2019. "Have economic growth and the quality of governance contributed to poverty reduction and improved well-being in African countries?," MPRA Paper 95139, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:95139
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    References listed on IDEAS

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    More about this item

    Keywords

    Economic growth; Governance indicators; Poverty; Well-being; Regional economic integration; Africa;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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