Estimating the relationship between governance, economic growth, inequality and poverty

Mohammed Touitou and Ahmed Boudeghdegh
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Mohammed Touitou: University of Algiers, Algeria
Ahmed Boudeghdegh: University of Jijel, Algeria

Theoretical and Applied Economics, 2021, vol. XXVIII, issue 3(628), Autumn, 115-128

Abstract: The main purpose of this paper is to estimate the relationship between governance, economic growth, inequality and poverty for 81 countries for the period 2000-2016. We divided the countries into three groups, low-income, lower-middle-income and upper-middle-income countries. We used a structural model with simultaneous equations on Panel data. Our results show that the positive or negative impact of governance on the growth-inequality-poverty triangle changes depending on the dimension of governance taken into account and the sample being studied. Given the negative relationship between inequality and growth, democracy should a second time positively affect economic growth through the reduction of inequalities.

Keywords: governance; economic growth; inequality; poverty. (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:3(628):y:2021:i:3(628):p:115-128

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