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Research Article Open access CC BY 4.0

Foreign Capital and Poverty Reduction in West Africa

Madow Nagou

Journal of Economics, Management and Trade · pp. 1–18 · Published 23 Dec 2017

10.9734/JEMT/2017/38479

Abstract

This paper investigates the effect of foreign capital on poverty reduction. For our analysis, we used recent panel data for ten West African countries* for the period 2000 - 2014. Results of the empirical test of the simultaneous equation model indicate that foreign capital affects poverty through growth and inequality. The total effect on poverty reduction is negative when the inequality effect outweighs the growth effect. Thus, foreign capital inflows promotion policies should necessary account for receiving countries socioeconomics mutations.

Foreign capital growth inequality poverty panel data

Cited by 1

Foreign direct investment and poverty in sub-Saharan African countries: The role of host absorptive capacity

Sodiq Arogundade, Biyase Mduduzi, Hinaunye Eita · Cogent Economics & Finance · 2021

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