Economic Growth and Poverty Reduction in Sub-Saharan Africa

IMF Working Papers, August 1, 2001

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Economic Growth and Poverty Reduction in Sub-Saharan Africa

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Bibliographic details

• Authors: Gary G. Moser, Toshihiro Ichida
• Published: August 1, 2001
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781451853605.001

Key findings

• The study confirms a strong and robust relationship between economic growth and poverty reduction in sub-Saharan Africa.
• Employing a panel of 46 countries covering the period 1972-97, the analysis finds:
  • A 10 percent increase in per capita GDP leads to a 1 percent increase in life expectancy.
  • A 10 percent increase in per capita GDP leads to a 3-4 percent decline in infant mortality rates.
  • A 10 percent increase in per capita GDP leads to a 3½-4 percent increase in the rate of gross primary school enrollment.
• The results are robust for high- and low-income countries, as well as fast- and slow-growth countries.

Data and methodology

• Data: panel of 46 countries.
• Time period: 1972-97.
• Publication length: 32 pages.
• Series: Working Paper No. 2001/112.
• Issue: 112.
• DOI: https://doi.org/10.5089/9781451853605.001

Controls and determinants of variability in poverty outcomes

• Quality of growth is identified as an important control variable explaining variability of poverty across Africa.
• Civil conflict is an important control variable affecting poverty variability.
• HIV/AIDs is an important control variable affecting poverty variability.
• Civil and institutional freedom are important control variables explaining poverty variability.
• Island economies are an important control variable explaining poverty variability.
• A country's latitude:
  • Is not found to be a significant factor explaining life expectancy.
  • Is not found to be a significant factor explaining infant mortality rates.
  • Is a significant factor explaining gross primary school enrollments.

Robustness and scope

• Findings hold across:
  • High-income and low-income country subsamples.
  • Fast-growth and slow-growth country subsamples.

Authors: Gary G. Moser and Toshihiro Ichida; August 1, 2001. IMF Working Paper No. 2001/112. DOI: https://doi.org/10.5089/9781451853605.001

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• Economic Growth and Poverty Reduction in Sub-Saharan Africa - WP/01/112
  • Economic Growth and Poverty Reduction in Sub-Saharan Africa - WP/01/112 (Markdown version)
  • Economic Growth and Poverty Reduction in Sub-Saharan Africa - WP/01/112 (PDF)