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1 – 10 of over 1000In this study, the impact of access to electricity on poverty reduction for Botswana is examined using the annual data from 1990 to 2021. The study was motivated by the need to…
Abstract
Purpose
In this study, the impact of access to electricity on poverty reduction for Botswana is examined using the annual data from 1990 to 2021. The study was motivated by the need to establish if access to electricity could be a panacea on poverty reduction in Botswana. Given that the United Nations Sustainable Development Goals deadline is fast approaching, and Botswana being one of the signatories, is expected to end poverty in all its forms – Goal 1. Establishing the role that electrification plays in poverty alleviation, helps in refocusing Botswana’s poverty alleviation strategies on factors that have high impact on poverty. The main objective of this study, therefore, is to investigate the relationship between poverty alleviation and access to electricity in Botswana.
Design/methodology/approach
The study uses the autoregressive distributed lag (ARDL) approach to investigate the nature of the relations. Two poverty proxies were used in this study namely, household consumption expenditure and life expectancy.
Findings
The study found access to electricity to reduce poverty in the long run and in the short run, regardless of the poverty measure used. Thus, access to electricity plays an important role in poverty alleviation and Botswana is recommended to continue with the rural and urban electrification initiatives.
Originality/value
The study explores the impact of access to electricity on poverty reduction in Botswana, a departure from the current studies that examined the same relationship using energy consumption in general. This is on the back of increasing dependence of economic activities on electricity as a major source of energy.
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Clement Olalekan Olaniyi and Nicholas M. Odhiambo
This study examines the roles of cross-sectional dependence, asymmetric structure and country-to-country policy variations in the inflation-poverty reduction causal nexus in…
Abstract
Purpose
This study examines the roles of cross-sectional dependence, asymmetric structure and country-to-country policy variations in the inflation-poverty reduction causal nexus in selected sub-Saharan African (SSA) countries from 1981 to 2019.
Design/methodology/approach
To account for cross-sectional dependence, heterogeneity and policy variations across countries in the inflation-poverty reduction causal nexus, this study uses robust Hatemi-J data decomposition procedures and a battery of second-generation techniques. These techniques include cross-sectional dependency tests, panel unit root tests, slope homogeneity tests and the Dumitrescu-Hurlin panel Granger non-causality approach.
Findings
Unlike existing studies, the panel and country-specific findings exhibit several dimensions of asymmetric causality in the inflation-poverty nexus. Positive inflationary shocks Granger-causes poverty reduction through investment and employment opportunities that benefit the impoverished in SSA. These findings align with country-specific analyses of Botswana, Cameroon, Gabon, Mauritania, South Africa and Togo. Also, a decline in poverty causes inflation to increase in the Congo Republic, Madagascar, Nigeria, Senegal and Togo. All panel and country-specific analyses reveal at least one dimension of asymmetric causality or another.
Practical implications
All stakeholders and policymakers must pay adequate attention to issues of asymmetric structures, nonlinearities and country-to-country policy variations to address country-specific issues and the socioeconomic problems in the probable causal nexus between the high incidence of extreme poverty and double-digit inflation rates in most SSA countries.
Originality/value
Studies on the inflation-poverty nexus are not uncommon in economic literature. Most existing studies focus on inflation’s effect on poverty. Existing studies that examine the inflation-poverty causal relationship covertly assume no asymmetric structure and nonlinearity. Also, the issues of cross-sectional dependence and heterogeneity are unexplored in the causal link in existing studies. All panel studies covertly impose homogeneous policies on countries in the causality. This study relaxes this supposition by allowing policies to vary across countries in the panel framework. Thus, this study makes three-dimensional contributions to increasing understanding of the inflation-poverty nexus.
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Parag S. Shukla and Sofia Devi Shamurailatpam
In recent decades, the concept of pro-poor tourism has emerged as one of the integral mechanisms that benefit the poor and the underprivileged sections of society. Eradication of…
Abstract
In recent decades, the concept of pro-poor tourism has emerged as one of the integral mechanisms that benefit the poor and the underprivileged sections of society. Eradication of poverty is a top priority of human development that is mentioned in the United Nations (UN) Millennium Development Goals (MDGs). Given the expansion of the tourism industry at present in India, the sustainability of this sector is significant, particularly in the rural and remote areas for the facilitation of income-generating opportunities to these vulnerable sections of society at large. The present research study aims to find out the various factors that determine the growth and expansion of the Indian tourism industry and to evaluate how such factors correlate with the alleviation of poverty in India. A panel regression is fitted to find out the nexus between the growth and expansion of the tourism industry in India and its impact on poverty alleviation standards. The selected dimensions, viz. number of tourists visited, per capita income at the state level, index of poverty as measured by headcount ratio, inequality index measured by GINI coefficient, economic specific variables such as literacy rate and infant mortality rate, and state of instability in states measured as by frequency of incidence of crimes in the region are being employed in the study. The estimated model reveals that the effects of tourism development have significant and bountiful outcomes in reducing poverty in India during the study period 2005–2018, as indicated by the estimated coefficient value of (−0.0655), controlling for the selected economic and state/region-specific variables.
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Anthony Smythe, Igor Martins and Martin Andersson
With the recognition that generating economic growth is not the same as sustaining it, the challenge to catch-up and growth literature is discerning between these processes…
Abstract
Purpose
With the recognition that generating economic growth is not the same as sustaining it, the challenge to catch-up and growth literature is discerning between these processes. Recent research suggests that the decline in the frequency of “shrinking” episodes is more important for long-term development than higher growth rates. By using a framework centred around social capabilities, this study aims to investigate the effects of income inequality and poverty on economic shrinking frequency, as opposed to previous literature that has exclusively had a growth focus. The aim is to investigate how and why some societies might be more resilient to economic shrinking.
Design/methodology/approach
The research is a quantitative study, and the authors build a longitudinal data set including 23 developing countries throughout 42 years to test the paper’s purpose. This study uses country and period fixed-effects specifications as well as cross-sectional graphical representations to investigate the relationship between proxies of economic inclusivity and the frequency of shrinking episodes.
Findings
The authors demonstrate that while inclusive societies are more resilient to shrinking overall, it is changes in poverty levels, but not changes in income inequality, that appear to be correlated with economic shrinking frequency. Inequality, while still an important element to explain countries’ growth potential as an initial condition, does not seem to make the sample more resilient to shrinking. The authors conclude that the mechanisms in which poverty and inequality are correlated with the catch-up process must run through different channels. Ultimately, processes that explain growth may intersect but not always overlap with the ones that explain resilience to shrinking.
Originality/value
The need for inclusive growth in long-term development has been championed for decades, yet inclusion has seldom been explored from the shrinking perspective. Though poverty reduction is already an important mainstream political objective, this paper differentiates itself by providing an alternate viewpoint of why this is important. Income inequality could have more of an economic growth limiting effect, while poverty reduction could be required to build resilience to economic shrinking. Developing countries will need both growth and resilience to shrinking, to catch-up with higher-income economies, which policymakers might need to balance carefully.
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The main purpose of this paper is to examine the status of poverty and its reduction by following the inclusive development approach. This study is designed to examine the…
Abstract
Purpose
The main purpose of this paper is to examine the status of poverty and its reduction by following the inclusive development approach. This study is designed to examine the benefits obtained from development programs, assess the government’s commitment to alleviating social inequality, and its impacts on the redistribution of wealth and poverty reduction.
Design/methodology/approach
To evaluate the implementation of the various development schemes and enhance grass-roots participation, a survey was carried out on 540 households, selected through multistage stratified sampling techniques in three different states of Punjab. The study employed an exploratory factor analysis on 21 independent variables to identify the key factors influencing poverty reduction subsequently followed by the binary logistic regression to access the sectoral impact of inclusiveness on poverty reduction in Punjab.
Findings
Exploratory Factor analysis extracted six key factors from the selected 21 variables, also called statements: “'Housing Development Resources”; “Human Capital Variables”; “Livelihood Essentials”, “Medical and Family Welfare Benefits”; “Receiving Educational Benefits”; and Social Security Benefits’. Binary logistic regression revealed that Housing Development Resources, Human Capital Variables, and Receiving Educational Facilities, significantly predict the likelihood of poverty reduction with inclusive growth in Punjab.
Practical implications
To provide basic amenities to rural people, increased people’s participation, decentralized planning, extended irrigation facilities, improved equipped facilities, and improved cultivation techniques are pivotal. The Indian Government has implemented several programs and projects to develop and support rural households. However, these schemes have faced many challenges such as rigidity, non-adaptability to local conditions, late disbursements of funds, reallocation of funds to unrelated expenditures by some states, embezzlement, and bribery demands. Hence, the findings indicate the presence of pseudo-inclusivity in Punjab’s growth.
Originality/value
The study’s uniqueness lies in its focus on selected districts of Punjab and also its application of exploratory factor analysis and binary logistic regression to construct a statistical model from the selected variables.
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William H. Money and Katherine E. Money
This research paper takes a narrow approach to examining the apparent link between poverty and the resource extraction industries. However, it acknowledges that much more is to be…
Abstract
Purpose
This research paper takes a narrow approach to examining the apparent link between poverty and the resource extraction industries. However, it acknowledges that much more is to be explored about this relationship. Many complexities influence the occurrence and degree of poverty in a particular country, region, or community.
Design/methodology/approach
The literature review identified proposed and operational poverty reduction actions and processes categorized under the broad concept of community development projects. The surveyed cases describe how various corporate strategies, work processes, labor requirements and efficient management and governance solutions are purported to improve poverty-reduction efforts potentially.
Findings
No causal linkages between poverty and hypothetically valuable and successful community development projects were found. No poverty monitoring evaluations and learning data (MEL) for these projects were proposed and published in most of the literature. However, associations were observed between some business practices implemented in these resource extraction community development projects and observations of indicators of lower poverty levels.
Practical implications
The research improves our understanding of the requirements and opportunities for successful community development projects by highlighting processes, company strategy, human resource programs and enlightened governance that can contribute to reducing poverty.
Originality/value
The paper identifies the characteristics of community development projects that appear to span natural resource extraction industries and countries. Effective management strategies and representative and formally designated organisational governance boards are essential for these projects.
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Yusuff Jelili Amuda and Shafiqul Hassan
This study reports the results of the empirical investigation of the Shari'ah legal framework which serves as a basis of the crowd humanitarian fund and poverty reduction among…
Abstract
Purpose
This study reports the results of the empirical investigation of the Shari'ah legal framework which serves as a basis of the crowd humanitarian fund and poverty reduction among members of Organization of Islamic Cooperation (OIC) for improving living conditions of less privileged people in the society.
Design/methodology/approach
Quantitative design was employed in this study and the population comprised middle and high-skilled workers among members of the OIC.
Findings
The results demonstrated that the majority of middle- and high-skilled workers were from the middle east and others were from Saudi Arabia, Asia and Africa respectively.
Research limitations/implications
Most studies on crowd humanitarian funds were theoretical in nature, this study has empirically investigated.
Practical implications
By making crowd humanitarian funds to be grounded within the framework of Shari'ah, it will enable majority of people in predominant Muslim countries to partake in mutual or crowd funding in order to help the less-privileged individuals among OIC members in the society.
Social implications
It is an important contribution for financial inclusion and economic growth for improving social and living conditions of the less privileged people in the society.
Originality/value
Most studies on crowd humanitarian funds were theoretical in nature; this study has empirically provided a substantial direction for activating the mindset of the empirical investigation of different financial concepts.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-12-2022-0773.
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Harold Delfín Angulo Bustinza, Bruno de Souza and Roberto De la Cruz Rojas
Mahmoud Ali Hailat, Mohammad W. Alomari and Ala' Bashayreh
This paper investigates the impact of microfinance on poverty gap which is the shortfall in income or consumption expenditures below $1.90, $3.20 and $5.50 per day. The paper’s…
Abstract
Purpose
This paper investigates the impact of microfinance on poverty gap which is the shortfall in income or consumption expenditures below $1.90, $3.20 and $5.50 per day. The paper’s primary goal is to investigate how microloans have impacted the severity of poverty and influenced the cost of poverty eradication in Latin America, empirically evaluate these effects and offer appropriate policy recommendations.
Design/methodology/approach
This paper used panel data for 13 Latin American countries from world bank spanning the period 2001–2019 and Fully Modified Ordinary Least Squares model for heterogeneous cointegrated panels. This study used Gross Loan Portfolio per active borrowers, gross domestic product per capita, Gini index, Inflation and Unemployment rate as independent variables and poverty gaps as dependent variables.
Findings
Poverty gaps narrow as the loan per borrower increases, and the degree of effect differs with the poverty line, with the magnitude increasing as the poverty line falls, underscoring microloans as an effective tool in closing poverty gaps and lowering the cost of poverty eradication. Growth of GDP per capita is helpful reducing the poverty gap, especially for the less poor of the poor. Inflation and unemployment have no to little impact on the severe poverty gaps, but they start to matter when the poverty line is $5.5 per day. Finally, income distribution inequality widens the poverty gap regardless of the poverty line used.
Originality/value
This study suggests several implications. For example, Latin American nations need to embrace tangible policies that encourage economic growth while reducing inequalities in income distribution to effectively eradicate poverty. More supportive environment is necessary to increase the effectiveness of microfinance operations, particularly for the poorest populations. Microfinance institutions need to set less stringent conditions for loan accessibility and repayment schedules that are commensurate with different levels of poverty. Finally, strengthening microfinance as a strategic policy to gradually close poverty gaps and reduce the cost of poverty eradication.
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Noha Omar and Heba Farida El-Laithy
This paper aims to examine the mismatch between multidimensional deprivation and monetary poverty in identifying the poor in Egypt and investigates their determinants empirically.
Abstract
Purpose
This paper aims to examine the mismatch between multidimensional deprivation and monetary poverty in identifying the poor in Egypt and investigates their determinants empirically.
Design/methodology/approach
The paper uses the Alkire-Foster multidimensional poverty measurement method using data from Egypt’s 2017/2018 Household Income, Expenditure and Consumption Survey (HIECS 2017/2018). Using a logistic regression model, the paper assesses the empirical relationship between multidimensional and monetary poverty and their determinants at the aggregate level and by dimension.
Findings
The paper demonstrates a significant mismatch between multidimensional and monetary poverty measures, underscoring their complementary nature. Statistics indicate that both measures overlap in classifying 35.81% of Egyptians, whereas monetary poverty ignores 63.12% of multidimensionally poor in at least one dimension. Regression estimates show a significant moderate negative association between expenditure per capita and multidimensional poverty and its dimensions. Moreover, they show that household head’s gender, age, education attainment, marital status, job proficiency, household size and location affect poverty mismatch and match in Egypt.
Practical implications
This paper offers Egyptian policymakers the multidimensional poverty index that enables more efficient designing and targeting of poverty alleviation programs and assessing current poverty alleviation programs to modify them if needed.
Originality/value
To the best of the authors’ knowledge, this study is the first to examine the mismatch between both poverty measures in Egypt, using the recent full data set of HIECS 2017/2018. This paper confirms that depending only on monetary measures can send inaccurate insights for crafting effective social policies. Also, it offers policymakers a comprehensive insight into the country’s poverty landscape, which enable more efficient design, targeting of poverty alleviation programs and monitoring their effectiveness.
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