Sustainable growth: Growth by poverty alleviation or poverty creation - the case of Sub-Saharan Africa
Sustainability and the Future of Work and Entrepreneurship for the Underserved, IGI Global, ss.334-345, 2022
- Yayın Türü: Kitapta Bölüm / Araştırma Kitabı
- Basım Tarihi: 2022
- Doi Numarası: 10.4018/978-1-6684-4322-4.ch017
- Yayınevi: IGI Global
- Sayfa Sayıları: ss.334-345
- Kırklareli Üniversitesi Adresli: Evet
Özet
The authors analyzed 30 countries in Sub-Saharan Africa over the period of 1996-2015 to investigate whether economic growth is sustainable, whether decreasing income inequality sustains growth, and whether economic growth alleviates or creates poverty due to decreasing or increasing income inequality, respectively. They found that growth in Sub-Saharan Africa is self-reinforcing in the sense that past levels of GDP per capita positively affect current levels of GDP per capita due to the strategic complementarity. Decrease in income inequality leads to growth due to increased consumption, higher investment in education, lower corruption, higher political stability, and more equal redistribution policies. Economic growth does not bring down income inequality in order to maximize social welfare. The authors conclude that growth is not sustainable in Sub-Saharan Africa since it only meets two of the three criteria.