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Towards the Reversal of Poverty and Income Inequality Setbacks Due to COVID-19: The Role of Globalisation and Resource Allocation

Isaac Kwesi Ofori (), Mark Armah () and Emmanuel Asmah ()
Additional contact information
Mark Armah: University of Cape Coast, Cape Coast, Ghana
Emmanuel Asmah: University of Cape Coast, Cape Coast, Ghana

No 21/043, Working Papers from European Xtramile Centre of African Studies (EXCAS)

Abstract: Policy recommendations for building resilient and all-inclusive societies post COVID-19 pandemic continue to dominate the media and research landscapes. However, rigorous empirical content backing such claims, particularly, on both poverty and income inequality, is hard to find. Motivated by the bleak outlook of the Middle East and North Africa (MENA) region, as driven primarily by the floundering hydrocarbon sector, vulnerable employment, and low foreign direct investment, we analyse the poverty and income inequality effects of globalisation and resource allocation in the region. Using data from the World Bank’s Poverty and Equity Database for the period 1990–2019, we provide estimates robust to several econometric techniques the pooled least square, fixed effect, random effect, and the system generalized method of moments estimators to show that: (1) while economic globalisation reduces both poverty and income inequality, social globalisation matters only for income inequality in MENA; (2) economic globalisation is remarkable in reducing income inequality through resource allocation. Policy recommendations are provided in the light of the geopolitical fragility and rise in social globalisation of the region.

Keywords: Economic Integration; Financial Deepening; GMM; MENA; Globalisation; Inequality; Poverty (search for similar items in EconPapers)
JEL-codes: F14 F15 F6 I3 O53 (search for similar items in EconPapers)
Pages: 32
Date: 2021-01
New Economics Papers: this item is included in nep-fdg and nep-int
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http://publications.excas.org/RePEc/exs/exs-wpaper ... -Inequality-MENA.pdf Revised version, 2021 (application/pdf)

Related works:
Working Paper: Towards the Reversal of Poverty and Income Inequality Setbacks Due to COVID-19: The Role of Globalisation and Resource Allocation (2021) Downloads
Working Paper: Towards the Reversal of Poverty and Income Inequality Setbacks Due to COVID-19: The Role of Globalisation and Resource Allocation (2021) Downloads
Working Paper: Towards the Reversal of Poverty and Income Inequality Setbacks Due to COVID-19: The Role of Globalisation and Resource Allocation (2021) Downloads
Working Paper: Towards the Reversal of Poverty and Income Inequality Setbacks Due to COVID-19: The Role of Globalisation and Resource Allocation (2021) Downloads
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