Publication Details

Is the Millennium Development Goal of poverty still achievable?

role of institutions, finance and openness

Katsushi Imai
Thapa Ganesh
Raghav Gaiha
2010

Abstract

Drawing upon the new World Bank poverty data, the present analysis examines the feasibility of achieving the Millennium Development Goal of income poverty (MDG1) where the inter-relationships are taken account of between finance, institutions, trade liberalisation and growth, and poverty. Our econometric results suggest a slowing down of poverty reduction in more recent years after 2000 in the parsimonious specification. Also confirmed are (i) the roles of better institutions in income growth, poverty reduction, trade openness, and financial development, (ii) the role of financial development in economic growth, (iii) the positive effect of capital liberalisation on financial development. Simulations for different regions show that MDG1 will be achieved in most regions if historical growth rate is maintained in 2006-2015, while the improvement in institutional quality is crucial for halving poverty for Sub Saharan Africa.

Publication Type(s)

Conference Paper

Ten Years of War Against Poverty Conference Papers

Conference: Ten Years of War Against Poverty

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