TY - JOUR
T1 - Growth and Institutions
T2 - A Potential Medicine for the Poor in Sub-Saharan Africa
AU - Akobeng, Eric
N1 - Publisher Copyright:
© 2016 African Development Bank.
PY - 2016/3/1
Y1 - 2016/3/1
N2 - The conventional wisdom is that growth is a precondition for poverty reduction. Paying particular attention to the level of growth, poverty and institutions in sub-Saharan Africa (SSA), this paper investigates the effect of GDP per capita growth and sectoral growth on poverty and explores whether the growth-poverty link can be strengthened by institutions. Using the panel dataset of 41 SSA countries over the period 1981-2010 and dynamic two-step system generalized method of moment (GMM) estimator; it is found that GDP per capita growth is an important instrument for poverty reduction. Also, the growth of agriculture and the service sectors have direct poverty-reducing effects. The paper further reveals that good and accountable government, bureaucratic quality and sound policies and regulations are important ingredients in sustaining the growth-poverty link in SSA.
AB - The conventional wisdom is that growth is a precondition for poverty reduction. Paying particular attention to the level of growth, poverty and institutions in sub-Saharan Africa (SSA), this paper investigates the effect of GDP per capita growth and sectoral growth on poverty and explores whether the growth-poverty link can be strengthened by institutions. Using the panel dataset of 41 SSA countries over the period 1981-2010 and dynamic two-step system generalized method of moment (GMM) estimator; it is found that GDP per capita growth is an important instrument for poverty reduction. Also, the growth of agriculture and the service sectors have direct poverty-reducing effects. The paper further reveals that good and accountable government, bureaucratic quality and sound policies and regulations are important ingredients in sustaining the growth-poverty link in SSA.
UR - http://www.scopus.com/inward/record.url?scp=84959349564&partnerID=8YFLogxK
U2 - 10.1111/1467-8268.12163
DO - 10.1111/1467-8268.12163
M3 - Article
AN - SCOPUS:84959349564
SN - 1017-6772
VL - 28
SP - 1
EP - 17
JO - African Development Review
JF - African Development Review
IS - 1
ER -