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Article
Publication date: 12 March 2024

Abigail Adeyonu, Dare Akerele, Mojisola Olanike Kehinde, Olugbenga Adesoji Christopher Ologbon, Oluwaremilekun Akintayo and Roseline Kolawole

Despite a reduction in poverty the global population in 2015, the incidence of poverty remains very high in Sub-Saharan African countries. Most of the countries in the region are…

Abstract

Purpose

Despite a reduction in poverty the global population in 2015, the incidence of poverty remains very high in Sub-Saharan African countries. Most of the countries in the region are agrarian, with most of their population residing in rural areas, and a majority of the poor in the region are found in Nigeria. This study examined the nexus between participation in nonfarm enterprises (NFEs) and poverty among rural farm households in Nigeria and across the six geopolitical zones.

Design/methodology/approach

The Nigerian Living Standard Survey (NLSS) conducted in 2018–2019 by the National Bureau of Statistics was used. We made use of 13,440 farm households with useful information for the purpose of this study. The sample comprises 6,885 households that participated in NFEs and 6,555 nonparticipating households. The data were analyzed with Foster, Greer, and Thorbecke (FGT) (1984) metrics, probit, and fractional probit models at p = 0.05.

Findings

The incidence of poverty was lower among the participating households than in the nonparticipating households. Participation in NFEs had a mitigating effect on poverty. We also established that zonal differentials in poverty rates exist among households in all the analyses. Participation in NFEs was influenced by individual, household, and institutional factors and was also able to explain the depth of poverty among the respondents.

Practical implications

It is suggested that poverty alleviation policies should be targeted at improving access to nonfarm economic activities by rural farm households residing in vulnerable geopolitical zones.

Originality/value

This study is the first attempt to profile household poverty based on the type of NFEs they are involved in. The study also provides an insight into the effect of the state of residence on zonal poverty models, which is expedient if the country must achieve Sustainable Development Goal 1 on the eradication of poverty everywhere.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-06-2023-0493

Details

International Journal of Social Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 1 April 2024

Folorunsho M. Ajide and James Temitope Dada

Energy poverty is a global phenomenon, but its prevalence is enormous in most African countries, with a potential impact on quality of life. This study aims to investigate the…

Abstract

Purpose

Energy poverty is a global phenomenon, but its prevalence is enormous in most African countries, with a potential impact on quality of life. This study aims to investigate the impact of energy poverty on the shadow economy.

Design/methodology/approach

The study uses panel data from 45 countries in Africa over a period of 1996–2018. Using panel cointegrating regression and panel vector auto-regression model in the generalized method of moments technique.

Findings

This study provides that energy poverty deepens the size of the shadow economy in Africa. It also documents that there is a bidirectional causality between shadow economy and energy poverty. Therefore, the two variables can predict each other.

Practical implications

The study suggests that lack of access to clean and modern energy services contributes to the depth of the shadow economy in Africa. African authorities are advised to strengthen rural and urban electrification initiatives by providing adequate energy infrastructure so as to reduce the level of energy poverty in the region. To ensure energy sustainability delivery, the study proposes that the creation of national and local capacities would be the most effective manner to guarantee energy accessibility and affordability. Also, priorities should be given to the local capital mobilization and energy subsidies for the energy poor. Energy literacy may also contribute to the sustainability and the usage of modern energy sources in Africa.

Originality/value

Previous studies reveal that income inequality contributes to the large size of shadow economy in developing economies. However, none of these studies analyzed the role of energy poverty and its implications for underground economic operations. Inadequate access to modern energy sources is likely to deepen the prevalence of informality in developing nations. Based on this, this study provides fresh evidence on the implications of energy deprivation on the shadow economy in Africa using a heterogeneous panel econometric framework. The study contributes to the literature by advocating that the provision of affordable modern energy sources for rural and urban settlements, and the creation of good energy infrastructure for the firms in the formal economy would not only improve the quality of life but also important to discourage underground economic operations in developing economies.

Details

International Journal of Energy Sector Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 14 March 2024

Lim Thye Goh, Irwan Trinugroho, Siong Hook Law and Dedi Rusdi

The objective of this paper is to investigate the impact of institutional quality, foreign direct investment (FDI) inflows and human capital development on Indonesia’s poverty…

Abstract

Purpose

The objective of this paper is to investigate the impact of institutional quality, foreign direct investment (FDI) inflows and human capital development on Indonesia’s poverty rate.

Design/methodology/approach

The quantile regression on data ranging from 1984 to 2019 was used to capture the relationship between the impact of the independent variables (FDI inflows, institutional quality and human capital development) on Indonesia’s poverty rate at different quantiles of the conditional distribution.

Findings

The empirical results reveal that low-quantile institutional quality is detrimental to poverty eradication, whereas FDI inflows and human capital development are significant at higher quantiles of distribution. This implies that higher-value FDI and advanced human capital development are critical to lifting Indonesians out of poverty.

Practical implications

Policymakers should prioritise strategies that advance human capital development, create an enticing investment climate that attracts high-value investments and improve institutional quality levels.

Originality/value

This study contributes to the existing literature because, compared to previous studies that focussed on estimating the conditional mean of the explanatory variable on the poverty rate. It rather provides a more comprehensive understanding of the quantiles of interest of FDI inflows and institutional quality on the Indonesian poverty rate, allowing for more targeted policies.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-09-2023-0733

Details

International Journal of Social Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 11 August 2023

Simona-Roxana Ulman and Krisztina Melinda Dobay

Firstly, the authors aimed at offering a general perspective on poverty, highlighting important directions of thinking from the theoretical development, including poverty's main…

Abstract

Purpose

Firstly, the authors aimed at offering a general perspective on poverty, highlighting important directions of thinking from the theoretical development, including poverty's main causes (like education, health, social protection, economic growth, employment and good governance). Secondly, it was investigated the problem of poverty in Romania after its accession to the European Union (EU), aiming to show (1) Romania's position among the EU member states, nearby (2) the direct and indirect effects of the selected factors particularly in this country.

Design/methodology/approach

Based on data from Eurostat and Global Competitiveness Index (GCI), descriptive and path analyses were performed for the period between 2007 and 2020.

Findings

The main results emphasized (1) the critical position of Romania among the EU member states in 2020 and the progress recorded since 2007, nearby (2) the direct and indirect effects of the selected factors on poverty in this country. The study highlighted the limited chances for the full participation of the poor people of Romania in the progress of the entire society, especially in terms of education and economic growth.

Originality/value

The major contribution of this study is that it assumes to investigate a profound and persistent societal phenomenon in Romania that is not sufficiently analyzed, discussed and understood. Consequently, this study attained its main objective of showing that the main traditional socio-economic causes of poverty are still pertinent in the actual Romanian society.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 29 March 2024

Oluwanishola Okogun and Masato Hiwatari

This study examines the dynamics of multidimensional poverty in Nigeria from 2003 to 2018, focusing on women and children, to understand the reality of poverty in Nigeria, where…

Abstract

Purpose

This study examines the dynamics of multidimensional poverty in Nigeria from 2003 to 2018, focusing on women and children, to understand the reality of poverty in Nigeria, where poverty reduction has been stagnant.

Design/methodology/approach

This study employed the first-order dominance (FOD) methodology to conduct a multidimensional analysis of poverty among households, women and children in Nigeria, using data from the Demographic and Health Surveys (DHS) conducted in 2003, 2008, 2013 and 2018. We examined how the relative position of multidimensional poverty in each zone has changed for approximately 20 years.

Findings

The results indicated that the north-south poverty gap in Nigeria persisted as of 2018 and, regarding within the north and south, changes in the relative pecking order of poverty between the zones have occurred considerably over the past two decades. Different trends were also observed for child and female poverty, suggesting the influence of the unique dimensions of poverty and cultural differences.

Originality/value

This study is the first poverty analysis to apply the FOD approach to children and women in Nigeria, the country with the highest poverty, over a relatively long period of 2003–2018.

Details

African Journal of Economic and Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-0705

Keywords

Article
Publication date: 27 March 2023

Olumide Olaoye, Segun Thompson Bolarinwa and Muhammad Yaseen

The paper contributes to the literature on investment and poverty in sub-Saharan Africa (SSA). Specifically, the study examined the separate role of private and public investment…

Abstract

Purpose

The paper contributes to the literature on investment and poverty in sub-Saharan Africa (SSA). Specifically, the study examined the separate role of private and public investment in poverty reduction in a panel of 40 sub-Saharan African countries.

Design/methodology/approach

For robustness, the study adopts a variety of estimation techniques. These include the fixed effect (within) regression model, the two-step system generalised method of moments (GMM) and the pooled OLS with Driscoll-Kraay robust standard errors to account for the well-known problems of endogeneity, heterogeneity and cross-sectional dependence inherent in panel data.

Findings

The empirical results show that the reducing impact of public investment on poverty is marginal, while private investment has a significant reducing impact on poverty. The study also found that access to social services, such as water and sanitation, and credit are important determinants of investment in SSA. The research and policy implications are discussed.

Originality/value

The study investigated the separate effect of private and public investments on poverty in SSA, unlike the existing studies that adopted total investment.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Open Access
Article
Publication date: 28 October 2022

Dechang Zheng, Shuang Tao, Chengtao Jiang and Yinglun Tang

This study explores whether religion plays an important role in corporate poverty alleviation. Religious atmosphere affects managers' attitude towards corporate social…

1251

Abstract

Purpose

This study explores whether religion plays an important role in corporate poverty alleviation. Religious atmosphere affects managers' attitude towards corporate social responsibility (CSR) and then influences corporate poverty alleviation. This study first examines the impact of religious atmosphere on corporate poverty alleviation and then investigates whether formal institutions, such as law enforcement environments and ownership, influence the relationship between religious atmosphere and corporate poverty alleviation behavior.

Design/methodology/approach

In 2016, the Chinese government initiated a nationwide campaign aiming to eliminate poverty in China by 2020. The authors conduct empirical tests with data on Chinese listed firms from 2016 to 2020. The religious atmosphere is measured by the number of Buddhist monasteries and Taoist temples within a certain radius around Chinese listed firms' registered addresses. The authors adopt the ordinary least squares (OLS) method for regression and take the two-stage least squares (2SLS) method to address the endogeneity issue.

Findings

The results show a positive relationship between religious atmosphere and corporate poverty alleviation donations. Law enforcement attenuates the positive association between the religious atmosphere and corporate poverty alleviation donations. Religion and corporate poverty alleviation donations have a more positive association for non-state-owned enterprises (non-SOEs) than for state-owned enterprises (SOEs).

Research limitations/implications

The authors' findings have important implications. First, this study inspires incorporating the ethical value of traditional culture, such as religion, into CSR. Second, the findings imply that informal institutions have a greater impact on corporate decision-making when formal institutions are weak, suggesting that informal institutions should be emphasized when promoting CSR in countries where formal institutions are relatively weak. The study investigates only religious influence on corporate poverty alleviation based on Buddhism and Taoism, but the authors do not examine the impacts of other religions. Future research may examine the relationships between other religions and corporate poverty alleviation in China.

Originality/value

This study illustrates the positive role played by religion in promoting CSR by relating religious atmosphere to corporate poverty alleviation. It fills the research gap between religion and CSR and also contributes to the literature on determinants of corporate poverty alleviation.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Open Access
Article
Publication date: 2 May 2023

Imtiyaz Ahmad Shah

The present study aims to examine the moderating impact of governance quality on the tourism poverty nexus using a panel of six South Asian Association for Regional Cooperation…

1186

Abstract

Purpose

The present study aims to examine the moderating impact of governance quality on the tourism poverty nexus using a panel of six South Asian Association for Regional Cooperation (SAARC) countries during the period 2002 to 2019.

Design/methodology/approach

For the soundness of the results, fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) econometric models were applied to determine the long-run relationship.

Findings

The findings confirmed the positive and significant impact of tourism development (international tourism arrival) and governance quality (effectiveness of governmental services) on poverty (per capita household consumption) reduction. Interestingly results confirm that governance quality and tourism development have complementary impacts on poverty reduction.

Originality/value

The present study has twofold contributions; First, despite the high potential of SAARC tourism, research remains limited in studies examining the role of tourism and governance quality on poverty reduction within the SAARC region. As a result, the present paper presents critical insights into the impact of tourism inflow and governance quality on poverty reduction in South Asian countries. Second, to the best of the author's knowledge, this is the first attempt to conduct an econometric analysis to examine the role of governance quality on the relationship between tourism inflow and poverty reduction in SAARC countries.

Details

Journal of Tourism Futures, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2055-5911

Keywords

Article
Publication date: 17 April 2024

Kabiru Kamalu and Wan Hakimah Binti Wan Ibrahim

This study examines the effect of digitalization on poverty and income inequality in developing countries. The study answers the question of whether digitalization is a way for…

Abstract

Purpose

This study examines the effect of digitalization on poverty and income inequality in developing countries. The study answers the question of whether digitalization is a way for developing countries to get out of poverty and income inequality.

Design/methodology/approach

The study uses data from 17 developing countries with data from 2005 to 2021. The study employs fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS), with an augmented mean group (AMG) for robustness. Digitalization, as the variable of interest, is proxied by the digitalization index (DI), constructed using principal component analysis (PCA). The dependent variables are poverty and income inequality, which are used in different models.

Findings

The evidence indicates that digitalization decreases poverty and income inequality in developing countries. These findings are justified when we use the AMG estimator, but the strength of the coefficients and significance levels are higher in the FMOLS and DOLS estimators. The results of the control variables also show that human development (LHDI), CO2 emissions and foreign direct investment (FDI) have decreasing effects on poverty and income inequality. Thus, digitalization is a good option for developing countries to get out of poverty and income inequality to achieve sustainable development goals (1&10).

Originality/value

This study provides rigorous empirical evidence on the effect of digitalization on poverty and income inequality in developing countries. Unlike the previous studies on developing countries, this study used a DI to proxy digitalization. In addition, the authors use FMOLS and DOLS estimators, with an AMG estimator for robustness, to provide long-run coefficients.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-08-2023-0586

Details

International Journal of Social Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 14 September 2023

Olumide O. Olaoye and Mulatu F. Zerihun

The study examined the roles of fiscal and monetary policy in reducing poverty in sub-Saharan Africa (SSA), while accounting for macroeconomic disruptions. In particular, the…

Abstract

Purpose

The study examined the roles of fiscal and monetary policy in reducing poverty in sub-Saharan Africa (SSA), while accounting for macroeconomic disruptions. In particular, the study examined the complementarity of fiscal and monetary policy to mitigate shocks and reduce poverty in SSA.

Design/methodology/approach

The study adopts the fixed effect (within regression) model to account for country-specific characteristics, and a cross-sectional dependence – consistent model to control for the potential cross-sectional in panel data modelling. The study used the dummy variable approach to account for the macroeconomic shocks. The authors assigned 1 to the following years – 2008, 2014 and 2020; and 0 otherwise to take care of the global financial crisis, commodity terms of trade shocks and the COVID-19 pandemic respectively.

Findings

The study found that fiscal policy (particularly, government spending on health and education) has the greater capacity to reduce the level of poverty in SSA. The results also indicate that fiscal policy and monetary policy can work in tandem to reduce the negative effects of a pandemic. However, the study found an optimal threshold level of monetary policy beyond which monetary policy reduces the effectiveness of fiscal policy to reduce poverty in SSA. The research and policy implications are discussed.

Originality/value

The study, unlike previous studies, accounts for the impact of macroeconomic shocks in the monetary/fiscal policy and poverty literature.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

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