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An empirical analysis of the impact of economic institutions on poverty levels in Sub-Saharan Africa regions / Abdulhakeem Abdullahi Kilishi, Musa Ayodeji Adebiyi and Abdulrahman Idris Abdulganiyu

The main objective of this study is to investigate the relative effect of ten different indicators of economic institutions on three measures of poverty: poverty headcount, extreme poverty measured as a poverty gap below $2.15 per day, and moderate poverty captured as a poverty gap below $3.65. A pa...

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Main Authors: Kilishi, Abdulhakeem Abdullahi, Adebiyi, Musa Ayodeji, Abdulganiyu, Abdulrahman Idris
Format: Article
Language:English
Published: Universiti Teknologi MARA Selangor 2023
Subjects:
HC Economic History and Conditions
Poor. Poverty
Online Access:https://ir.uitm.edu.my/id/eprint/94764/1/94764.pdf
https://ir.uitm.edu.my/id/eprint/94764/
http://myjms.mohe.gov.my/index.php/JEEIR
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spelling my.uitm.ir.947642024-06-25T09:08:36Z https://ir.uitm.edu.my/id/eprint/94764/ An empirical analysis of the impact of economic institutions on poverty levels in Sub-Saharan Africa regions / Abdulhakeem Abdullahi Kilishi, Musa Ayodeji Adebiyi and Abdulrahman Idris Abdulganiyu jeeir Kilishi, Abdulhakeem Abdullahi Adebiyi, Musa Ayodeji Abdulganiyu, Abdulrahman Idris HC Economic History and Conditions Poor. Poverty The main objective of this study is to investigate the relative effect of ten different indicators of economic institutions on three measures of poverty: poverty headcount, extreme poverty measured as a poverty gap below $2.15 per day, and moderate poverty captured as a poverty gap below $3.65. A panel data from forty-one Sub-Saharan African (SSA) countries over a period of 2007 to 2021 is analyzed using the two-step System-Generalised Method of Moments (system-GMM) technique. The Sargan test for overidentification restrictions and the Arellano-Bond test for second-order serial correlation were conducted. The findings revealed that improvements in government integrity, business freedom, investment freedom, and financial freedom are crucial to reducing poverty in SSA. It is also revealed that a rise in tax burden would significantly result in an increase in poverty. Similarly, more trade freedom would lead to increase in moderate poverty and poverty headcount, though it would significantly reduce extreme poverty. To win the war against poverty in SSA, it is recommended that efforts be directed towards improving the integrity of government by making government decisions and activities more transparent. The process of starting and operating a business should also be made easy, while the financial system should be made more open and fairly accessible to all. On the other hand, a high tax burden in terms of multiple taxes, a high tax rate, high public debt, and unproductive public spending should be avoided. Trade openness should be done with caution so as not to hurt infant industries. Universiti Teknologi MARA Selangor 2023 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/94764/1/94764.pdf An empirical analysis of the impact of economic institutions on poverty levels in Sub-Saharan Africa regions / Abdulhakeem Abdullahi Kilishi, Musa Ayodeji Adebiyi and Abdulrahman Idris Abdulganiyu. (2023) Journal of Emerging Economies & Islamic Research <https://ir.uitm.edu.my/view/publication/Journal_of_Emerging_Economies_=26_Islamic_Research/>, 11 (3). pp. 48-64. ISSN 2289-2559 http://myjms.mohe.gov.my/index.php/JEEIR
institution Universiti Teknologi Mara
building Tun Abdul Razak Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Mara
content_source UiTM Institutional Repository
url_provider http://ir.uitm.edu.my/
language English
topic HC Economic History and Conditions
Poor. Poverty
spellingShingle HC Economic History and Conditions
Poor. Poverty
Kilishi, Abdulhakeem Abdullahi
Adebiyi, Musa Ayodeji
Abdulganiyu, Abdulrahman Idris
An empirical analysis of the impact of economic institutions on poverty levels in Sub-Saharan Africa regions / Abdulhakeem Abdullahi Kilishi, Musa Ayodeji Adebiyi and Abdulrahman Idris Abdulganiyu
description The main objective of this study is to investigate the relative effect of ten different indicators of economic institutions on three measures of poverty: poverty headcount, extreme poverty measured as a poverty gap below $2.15 per day, and moderate poverty captured as a poverty gap below $3.65. A panel data from forty-one Sub-Saharan African (SSA) countries over a period of 2007 to 2021 is analyzed using the two-step System-Generalised Method of Moments (system-GMM) technique. The Sargan test for overidentification restrictions and the Arellano-Bond test for second-order serial correlation were conducted. The findings revealed that improvements in government integrity, business freedom, investment freedom, and financial freedom are crucial to reducing poverty in SSA. It is also revealed that a rise in tax burden would significantly result in an increase in poverty. Similarly, more trade freedom would lead to increase in moderate poverty and poverty headcount, though it would significantly reduce extreme poverty. To win the war against poverty in SSA, it is recommended that efforts be directed towards improving the integrity of government by making government decisions and activities more transparent. The process of starting and operating a business should also be made easy, while the financial system should be made more open and fairly accessible to all. On the other hand, a high tax burden in terms of multiple taxes, a high tax rate, high public debt, and unproductive public spending should be avoided. Trade openness should be done with caution so as not to hurt infant industries.
format Article
author Kilishi, Abdulhakeem Abdullahi
Adebiyi, Musa Ayodeji
Abdulganiyu, Abdulrahman Idris
author_facet Kilishi, Abdulhakeem Abdullahi
Adebiyi, Musa Ayodeji
Abdulganiyu, Abdulrahman Idris
author_sort Kilishi, Abdulhakeem Abdullahi
title An empirical analysis of the impact of economic institutions on poverty levels in Sub-Saharan Africa regions / Abdulhakeem Abdullahi Kilishi, Musa Ayodeji Adebiyi and Abdulrahman Idris Abdulganiyu
title_short An empirical analysis of the impact of economic institutions on poverty levels in Sub-Saharan Africa regions / Abdulhakeem Abdullahi Kilishi, Musa Ayodeji Adebiyi and Abdulrahman Idris Abdulganiyu
title_full An empirical analysis of the impact of economic institutions on poverty levels in Sub-Saharan Africa regions / Abdulhakeem Abdullahi Kilishi, Musa Ayodeji Adebiyi and Abdulrahman Idris Abdulganiyu
title_fullStr An empirical analysis of the impact of economic institutions on poverty levels in Sub-Saharan Africa regions / Abdulhakeem Abdullahi Kilishi, Musa Ayodeji Adebiyi and Abdulrahman Idris Abdulganiyu
title_full_unstemmed An empirical analysis of the impact of economic institutions on poverty levels in Sub-Saharan Africa regions / Abdulhakeem Abdullahi Kilishi, Musa Ayodeji Adebiyi and Abdulrahman Idris Abdulganiyu
title_sort empirical analysis of the impact of economic institutions on poverty levels in sub-saharan africa regions / abdulhakeem abdullahi kilishi, musa ayodeji adebiyi and abdulrahman idris abdulganiyu
publisher Universiti Teknologi MARA Selangor
publishDate 2023
url https://ir.uitm.edu.my/id/eprint/94764/1/94764.pdf
https://ir.uitm.edu.my/id/eprint/94764/
http://myjms.mohe.gov.my/index.php/JEEIR
_version_ 1802981082810810368
score 13.211869

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