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Analyzing Economic Growth and Its impact on Poverty Reduction in Africa

Author

Listed:
  • Benjamin Korankye

    (School of Management, Jiangsu University, Zhenjiang 212013, China)

  • Xuezhou Wen

    (School of Business, Jiangnan University, Wuxi 214122, China)

  • Appiah Michael

    (School of Finance Jiangsu University, Zhenjiang 212013, China)

  • Easmond Baah-Nketiah

    (School of Finance Jiangsu University, Zhenjiang 212013, China)

Abstract

This study currently examines some economic growth variables that interact to reduce poverty in West, East, South, Central, and North African. The review uses panel data from 1998 to 2017 based on the unit root, co-integration, fully modified ordinarily least squares (FMOLS), and granger causality to effect estimations. The study examines the association between these variables of economic Growth received and how they affect poverty. The results find economic growth promotes certain aspects of poverty reduction with the size of population and employment has been a significant factor. The granger result shows the uniqueness of the variables with bi-direction running between gross domestic product and poverty, gross capital formation and broad money, population, and broad money, and population and poverty do not Granger cause each other in the long run. It was in-line with most studies by other researchers that state these main variables has been very significant when it comes to poverty reduction in most developed countries. The study emphasized that, in the contest of Africa, these main variables helps to reduce poverty but at a minimal level.

Suggested Citation

  • Benjamin Korankye & Xuezhou Wen & Appiah Michael & Easmond Baah-Nketiah, 2020. "Analyzing Economic Growth and Its impact on Poverty Reduction in Africa," International Journal of Science and Business, IJSAB International, vol. 4(12), pages 93-105.
    • Handle: RePEc:aif:journl:v:4:y:2020:i:12:p:93-105
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    References listed on IDEAS

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