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

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  • Simplice Asongu

    (Yaoundé/Cameroun)

  • Oasis Kodila-Tedika

    (Kinshasa, Democratic Republic of Congo)

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.

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  • Simplice Asongu & Oasis Kodila-Tedika, 2014. "Institutions and Poverty: A Critical Comment Based on Evolving Currents and Debates," Working Papers of the African Governance and Development Institute. 14/031, African Governance and Development Institute..
    • Handle: RePEc:agd:wpaper:14/031
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    More about this item

    Keywords

    poverty; institutions;

    JEL classification:

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

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