Agbo, Elias Igwebuike and Ugwu, Osmund Chinweoda (2025) RE-EXAMINING THE EFFECT OF ECONOMIC GROWTH ON POVERTY REDUCTION IN SUB-SAHARA AFRICAN COUNTRIES. British International Journal of Applied Economics, Finance and Accounting, 9 (2). pp. 59-90. ISSN 2234-2418
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Abstract
Several nations in sub-Sahara Africa have not witnessed significant reduction in poverty levels in the recent years, even amidst speedier growth. This paper evaluates the extent to which economic growth reduces poverty in those countries using empirical data for1985 to 2023 and Nigeria as case in point. Ex-post facto research design is used while ARDL and NARDL models are employed for data analysis. Poverty Headcount Ratio (proxy for poverty reduction) is the dependent variable, while economic growth rate, GDP per capita, government expenditure, inflation rate and unemployment rate are the explanatory variables. The results show that, in the short-run, economic growth rate has a weak positive effect on poverty reduction, GDP per capita reduces poverty largely, while unemployment rate has a slight adverse effect on poverty level. Also, increase in inflation rate is found to be reducing poverty mildly, while government expenditure is positively and significantly connected with poverty headcount ratio. The model’s R-squared value shows that only 40.885% of the changes in poverty level is explained by the model, implying that, in addition to economic growth, there are other factors that must be taken into consideration for poverty level to be reduced significantly. The study suggests that governments should promote inclusive growth that addresses inequality and other related issues in order to reduce poverty level significantly.
| Item Type: | Article |
|---|---|
| Subjects: | H Social Sciences > HC Economic History and Conditions |
| Divisions: | Faculty of Management and Social Sciences |
| Depositing User: | mrs chioma hannah |
| Date Deposited: | 15 Oct 2025 13:56 |
| Last Modified: | 15 Oct 2025 13:56 |
| URI: | http://eprints.gouni.edu.ng/id/eprint/5569 |
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