Good Governance and Poverty Reduction: Empirical Evidence from Selected Sub-Saharan Africa
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Date
2025-02-21
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A.A.U
Abstract
The purpose of this study is to investigate the impact of good governance on Poverty reduction in selected Sub-Saharan African countries. The study used panel data from 36 Sub-Saharan African countries over the period 2010 to 2022. The data is analyzed using a fixed effect estimation model and a Granger causality test to investigate a possible causal relationship between good governance and Poverty reduction. The result of the study revealed that effective governance has a positive significant effect on Poverty reduction. Moreover, the economic growth and development of human capital are found to contribute to the reduction of Poverty in sub-Saharan Africa. Nevertheless, the Granger causality test suggested that there is no evidence for a causal relationship between good governance and Poverty reduction. The study suggests that improved effectiveness of government, strengthening economic growth, and enhancing human capital contribute to the reduction of poverty in sub-Saharan African countries.