The Quality of Institutions -The Contribution to Poverty Reduction in Sub-Saharan Africa
Hana MOSSAOUI – Doctor in Economics: University of Sfax (Tunisia
Mohamed Tlili HAMDI – Professor in Economics: University of Sfax (Tunisia
Democratic Arab Center
Journal of Afro-Asian Studies : Fifth Issue – April 2020
A Periodical International Journal published by the “Democratic Arab Center” Germany – Berlin. The journal deals with the field of Afro-Asian strategic, political and economic studies
Abstract
The purpose of this work is to study theoretically and empirically role of economic growth to reduce poverty in Africa, while taking into account the institutional quality in this relationship. In other words, one wonders whether the quality of institutions hinders the effect of growth on poverty reduction or accelerates it? Is there a threshold level for the institutional quality for the effect of growth on poverty reduction to be more effective? The approach used to discuss this problem is to use the most recent econometric methods (Autoregressive Distributed Lag (ARDL)) to verify empirically these relationships for a sample of 18 countries in sub-Saharan Africa. The main results obtained are three in number: i) Economic growth reduce poverty, (ii) This effect dependent of the institutions quality, iii) There is a threshold level for the institutions quality which growth reduces poverty. In reality, the interest of this question is twofold: i) The closure of the Millennium Development Program (MDG) without a significant reduction in poverty in the African continent. This failure gave birth to a new Sustainable Development Program (PDD) by 2030. (ii) Sub-Saharan Africa has become a new pole of economic growth and therefore cooperation South-South has become a priority.
