The relationship between inequality and poverty in developing countries: mitigating role of virtual social network and internet access in schools

This research complements the extant literature on poverty and inequality by assessing the role ‘virtual social networks’ and ‘internet access in schools’ in mitigating the incidence of inequality on poverty. Using secondary data, the focus of the study is on developing countries and the empirical evidence is based on Tobit regressions. The study shows that inequality unconditionally increases poverty while ‘virtual social networks’ and ‘internet access in schools’ negatively moderate the effect of inequality on poverty. An extended analysis provides thresholds of ‘virtual social networks’ and ‘internet access in schools’ at which, the unconditional positive effect of inequality on poverty is completely dampened and above which, negative incidences on poverty are apparent. These attendant information technology thresholds are below average levels in the sampled countries. The study complements that extant literature by assessing the role of virtual social networks and internet access in schools in mitigating the incidence of inequality on poverty in developing countries. Policy implications are discussed in the light of Sustainable Development Goals.