Growth-inequality-poverty triangle in developing countries: the role of political stability

Giscard Assoumou-Ella () and Streley Paul N'nang-Ndong ()
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Giscard Assoumou-Ella: LABAT, Omar Bongo University
Streley Paul N'nang-Ndong: LABAT, Omar Bongo University

Economics Bulletin, 2026, vol. 46, issue 2, 429 - 445

Abstract: This paper investigates the moderating role of political stability within the growth-inequality-poverty triangle using a panel of 23 Sub-Saharan African countries over the period 2003-2020. Employing both dynamic System GMM and Hansen's (1999) non-linear threshold modeling, we provide empirical evidence that institutional governance acts as a critical catalyst in this relationship. Linear estimates demonstrate that political stability significantly amplifies the poverty-reducing effects of economic growth and inequality reduction. Furthermore, our non-linear analysis identifies specific institutional thresholds; above these critical levels of political stability and absence of violence, the benefits of growth and redistributive policies on extreme poverty alleviation are substantially magnified. These findings highlight that macroeconomic strategies aimed at poverty reduction in fragile contexts must be coupled with robust institutional consolidation to be fully effective.

Keywords: Economic growth; Income inequality; Poverty alleviation; Political stability; Institutional governance; Panel data; Sub-Saharan Africa (search for similar items in EconPapers)
JEL-codes: I3 O1 (search for similar items in EconPapers)
Date: 2026-06-30
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Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-24-00425

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