La qualité de gouvernance et le triangle croissance-inégalité-pauvreté

The relationship between growth-inequality-poverty triangle and governance

Abderrazek Ben Hamouda

MPRA Paper from University Library of Munich, Germany

Abstract: The main objective of the present study is to identify the mechanisms through which governance affects at the same time inequality, poverty and growth. The study covers the period 1996-2012 which corresponds to the adoption of the Millennium Development Goals (MDGs). The latter has, as a primary objective, reducing to a certain extent the proportion of people living in extreme poverty. To answer our research question, we use a structural model with simultaneous equations on Panel data. The results of the econometric estimates show that in the case of low-income countries, improving the quality of governance does not lead directly to the reduction of poverty. However, for middle-income countries with a certain level of economic development, poverty can be reduced through governance reforms. Indeed, at a certain level of development, the nature of the political regime, the political stability and the effectiveness of government can contribute to reducing poverty. In addition, our results show that governance variables have a dual effect. The first effect on economic growth is positive while the second effect on inequality is negative. These effects are found for the three groups under study.

Keywords: Governance; Economic Growth; Inequality; Poverty (search for similar items in EconPapers)
JEL-codes: C23 O11 O4 O57 (search for similar items in EconPapers)
Date: 2018-06-30
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