Exploring the Dynamic Linkages Between Poverty, Transportation Infrastructure, Inclusive Growth and Technology: A Continent-Wise Comparison in Lower-Middle-Income Countries

Manel Ouni (), Rafaa Mraihi (), Sonia Mrad () and Ghassen Montasser ()
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Manel Ouni: University of Manouba
Rafaa Mraihi: University of Manouba
Sonia Mrad: University of Manouba
Ghassen Montasser: University of Manouba

Journal of the Knowledge Economy, 2025, vol. 16, issue 5, No 45, 16820-16869

Abstract: Abstract The United Nations 2030 agenda for Sustainable Development aims to eradicate poverty in all its forms. However, prior research on the impact of transportation infrastructure and inclusive growth on poverty reduction has been limited, particularly in lower-middle-income countries, and cross-country comparisons have been scarce. To address this gap, this study analyzes the impact of transport infrastructure, inclusive growth, income inequality, information and communication technologies (ICT), inflation, and governance on poverty across 33 lower-middle income countries from three continents (Africa, Asia, and America) from 1995 to 2021. Using data from the World Development Indicators and the Worldwide Governance Indicators, we apply advanced econometric techniques. Initially, second-generation panel unit root tests are applied to check the integration order after confirming the cross-sectional dependency and heterogeneity. To examine the long-term impact of different factors on poverty, we use four estimation techniques (FMOLS, DOLS, AMG and CCEMG) and the Juodis et al. (2021) non-causality test to examine the direction of causality. The findings reveal that poverty was reduced by transport infrastructure and inclusive growth (in Africa, Asia, and America), governance (in Africa, and Asia), and ICT (in Asia). Country-level reciprocal relationships with poverty were identified in 19 countries for transport infrastructure, 21 countries for inclusive growth, 5 countries for income inequality, 16 countries for ICT, 7 countries for governance, and 9 countries for inflation. Furthermore, Juodis et al. (2021) found bidirectional causality between road infrastructure and poverty (in Africa), rail infrastructure and poverty (in Africa and Asia), inclusive growth and poverty (in America), income inequality and poverty (in Africa, Asia, and America), inflation and poverty (in Asia), and governance and poverty (in Africa). The results emphasize the practical importance of prioritizing transport infrastructure investments and inclusive growth policies in poverty reduction strategies. Policymakers must focus on improving access to labor market, encouraging investments, connecting regions, and promoting equitable wealth distribution across different social groups.

Keywords: Inclusive Growth; Poverty; Middle-Income Countries; Transport Infrastructure; Sustainable Development; Technology (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s13132-024-02516-5

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