The diaspora effect to poverty alleviation in Zimbabwe

2019 ◽  
Vol 118 (11) ◽  
pp. 381-416
Author(s):  
David Damiyano ◽  
Nirmala Dorasamy

The main objective of this study is to empirically examine the impact of diasporas on poverty alleviation in Zimbabwe from 1980 to 2017. Thus, this research analysis explores the empirical poverty alleviation impact of formal diaspora in Zimbabwe, using per capita GDP and income inequality as control variables. Using the Ordinary Least Squares estimation at first difference and linearized data, the study found no statistical evidence that remittances contribute towards poverty reduction in Zimbabwe over the period under review. However, per capita GDP and income inequality with positive and negative expected signs, were found to have statistically significant coefficients at 1 percent and 10 percent, respectively and accounted for 65 percent of changes in poverty levels in Zimbabwe. The study failed to establish a relationship between remittances and poverty levels in Zimbabwe because it used the data on remittances from the formal channels only while most of the remittances get their way into the economy through informal channels. The study goes on further to recommend measures that improve formal inflows of remittances into the economy such as granting voting franchise to people in the diaspora so that they can participate in the country’s democratic processes as well as putting in place policies that promote the investment of diaspora monies into the financial sector and help enhance financial literacy of both migrants and their households.

2018 ◽  
Vol 21 (2) ◽  
pp. 51-68 ◽  
Author(s):  
Kunofiwa Tsaurai

The study explored the impact of remittances on poverty in selected emerging markets. On the theoretical front, the optimistic view argued that remittances inflow into the labour exporting country reduces poverty whereas the pessimistic view proponents said that remittances dependence syndrome retards both economic growth and income per capita. Separately, using two measures of poverty [the poverty headcount ratio at US $1.90 and US $3.10 a day (% of population)] as dependent variables, the fixed effects approach produced results which supported the remittances led poverty reduction (optimistic) hypothesis whereas the pooled ordinary least squares (OLS) framework found that remittances inflow into the selected emerging markets led to an increase in poverty levels. The implication of the findings is that emerging markets should put in place policies that attract migrant remittances in order to reduce poverty levels. They should avoid over‑reliance on remittances as that might retard economic growth and income per capita.


2021 ◽  
Vol 292 ◽  
pp. 03032
Author(s):  
Chi Ouyang

With the victory of China’s fight against poverty in 2020, the focus of poverty alleviation will shift to prevent poverty reinstatement. With the help of the survey data of 676 poverty-alleviation households in Liangshan Prefecture, this paper identifies the poverty-return risk of poverty-alleviation households and further analyzes its related influence mechanism. The results found that most of the poverty-alleviation households have a low risk of returning to poverty. The impact mechanism shows that the village hardening road compliance status, endogenous development motivation, county per capita GDP, and the proportion of wage income are negatively correlated with the risk of poverty-returning households in Liangshan prefecture; however, this effect has group heterogeneity and is more conducive to reducing the poverty-return risk for those with higher risk of returning to poverty. The number of people with disabilities and the number of people receiving subsistence allowances in the family are positively correlated with the poverty-return risk. And put forward suggestions to prevent poverty return based on industrial development.


Author(s):  
Rodolfo Hoffmann

Income inequality in Brazil, already high, increased after the military coup of 1964 and remained very high even after democratization in the 1980s. It decreased substantially in the period 2001–2014, after inflation was controlled. The Gini index of the per capita household income dropped from 0.594 in 2001 to 0.513 in 2014. The determinants of this decline in inequality are analyzed considering the components of that income and how each one affected changes in inequality, showing the impact of changes in the remuneration of private sector employees and in pensions paid by the government, as well as federal transfer programs. Changes in education lie behind the first of these effects, and the increase of the minimum wage reinforced all three. The economic crises after 2014 interrupted the process of decline, and among economically active persons, inequality even increased from 2014 to 2015. Measures to further reduce inequality are suggested.


Author(s):  
Darma Mahadea ◽  
Irrshad Kaseeram

Background: South Africa has made significant progress since the dawn of democracy in 1994. It registered positive economic growth rates and its real gross domestic product (GDP) per capita increased from R42 849 in 1994 to over R56 000 in 2015. However, employment growth lagged behind GDP growth, resulting in rising unemployment. Aim and setting: Entrepreneurship brings together labour and capital in generating income, output and employment. According to South Africa’s National Development Plan, employment growth would come mainly from small-firm entrepreneurship and economic growth. Accordingly, this article investigates the impact unemployment and per capita income have on early stage total entrepreneurship activity (TEA) in South Africa, using data covering the 1994–2015 period. Methods: The methodology used is the dynamic least squares regression. The article tests the assertion that economic growth, proxied by real per capita GDP income, promotes entrepreneurship and that high unemployment forces necessity entrepreneurship. Results: The regression results indicate that per capita real GDP, which increases with economic growth, has a highly significant, positive impact on entrepreneurial activity, while unemployment has a weaker effect. A 1% rise in real per capita GDP results in a 0.16% rise in TEA entrepreneurship, and a 1% rise in unemployment is associated with a 0.25% rise in TEA. Conclusion: There seems to be a strong pull factor, from income growth to entrepreneurship and a reasonable push from unemployment to entrepreneurship, as individuals without employment are forced to self-employment as a necessity, survival mechanism. Overall, a long-run co-integrating relationship seems plausible between unemployment, income and entrepreneurship in South Africa.


Author(s):  
Sherine Fathy Mansour ◽  
Dalia Elsaid Abozaid

This study examines the impact of New Integrated Management Package (IMP) adoption on income and poverty among fodder farming household in Sahl El-Tina. The IMP such as Rate, time, and methods of nitrogen fertilization and other fertilization, Leaching requirements for some crops, Intercropping system, Use of suitable crop genotype/variety, Use of modern irrigation systems or modified systems to save water, date, rate and method of planting. The study aims mainly to improve the lives of small farmers through the level of dissemination and application of cultivation techniques forage crops tolerant to salinity through develop and disseminate technologies packages of forage production. And reducing their probability of falling below the poverty line. Therefore suggest that intensification of the investment on IMP dissemination is a reasonable policy instrument to raise incomes and reduce poverty among fodder farming household. It used instrumental variables (IV)-based estimator to estimate the Local Average Treatment Effect (LATE) of adoption of IMP on income and poverty reduction, using cross-sectional data of 200 farmers from Shal El-Tina. The findings reveal a robust positive and significant impact of IMP adoption on farm household income and welfare measured by per capita expenditure and poverty reduction. Specifically, the empirical results suggest that adoption of IMP raises household per capita expenditure and income by an average of 529.27$ and 1371$ in Shal El-Tina per cropping season respectively, thereby reducing their probability of falling below the poverty line. Therefore suggest that intensification of the investment on IMP dissemination is a reasonable policy instrument to raise incomes and reduce poverty among fodder farming household, although complementary measures are also needed. The incidence of poverty was higher among non-IMP adopters (55.2%) than IMP adopters (49.5%). In addition, both the depth and severity of poverty were also higher (20.85% and 15.42%) among non-adopters than the adopters (18.48% and 9.88%). All three poverty measures indicate that poverty was more prevalent and severe among non-adopters compared to adopters.


2019 ◽  
Author(s):  
Jay Luo

Poverty alleviation is a hallmark of post-revolution Chinese policymaking. Since 1978, the Communist Party of China (CPC) has implemented successive waves of poverty alleviation policies whose effects have become the focus of an ever-increasing body of academic literature. This paper reviews this diverse but limited literature that evaluates the impact of the CPC’s poverty reduction programs through four major channels, namely fiscal investment programs, social safety nets, rural governance on the village-, county- and provincial level, and the relocation of rural populations from destitute regions. This paper aims to synthesize results and evaluate whether and how the abovementioned poverty alleviation programs have had distinct positive or negative impacts on regional development outcomes. Furthermore, I highlight contradictions in empirical findings to motivate the discussion about contextual importance when designing and implementing future poverty alleviation programs. Finally, I suggest that an exhaustive and critical appraisal of the empirical strategies used in this literature would further the development and application of more accurate and informative methodologies.


2018 ◽  
Vol 5 (5) ◽  
pp. 83
Author(s):  
Daouda Coulibaly

We analyse financial development’s impact on real gross domestic product per capita in seven West African Economic and Monetary Union (WAEMU) countries from 1970 to 2014. We assume that income and financial development process converge to USA, France and Japan’s levels respectively. An analysis of the unit root and cointegration tests revealed non-stationary and cointegrated series. Estimates are based on the Dynamic Seemingly Unrelated Regression method (DSUR). Our study shows that, (i) the effect of financial development on real per capita GDP improves in WAEMU countries as the latter converge financially to their respective levels in USA, France and Japan; (ii) the effect of financial development on real GDP per capita decreases in the WAEMU countries as they grow economically to reach USA, France and Japan’s income levels; (iii) the degree of the effect of financial development on real per capita GDP in the case of financial systems is stronger than that of the convergence of income.


2017 ◽  
Vol 5 (2) ◽  
pp. 43-45 ◽  
Author(s):  
Басовская ◽  
Elena Basovskaya ◽  
Басовский ◽  
Leonid Basovskiy

Econometric impact assessments of new technologies and human capital on a contribution of new technological ways to per capita GDP in regions of Northwest Federal District of Russia are received. Coefficients of elasticity of a contribution of new ways to per capita GDP on use of the new technologies estimated by armament the work equity new fixed assets and for use of the human capital estimated by a share of busy workers with the higher education are estimated. The use of new technologies is the most effective in St. Petersburg, in the Murmansk, Leningrad regions and in the Komi Republic. Efficiency use of new technologies in the Pskov region is the lowest. The human capital is most effectively in the Komi Republic, the Murmansk and Leningrad regions. Efficiency use of a human capital in the Pskov region is the lowest.


2015 ◽  
Vol 22 (1) ◽  
pp. 20-41
Author(s):  
Bao Nguyen Hoang

Although Vietnam’s economic growth and poverty reduction for almost three decades have been remarkable, growth for poverty reduction is unequally distributed across the nation. The paper examines the cause of poverty and the impact of provincial economic growth on poverty alleviation, using the data of 63 provinces in Vietnam. The elasticity of poverty with respect to provincial economic growth is employed (the elasticities of headcount index, poverty gap index, and squared poverty index with respect to provincial economic growth) to identify the provinces where pro-poor growth has occurred. The elasticity of poverty with respect to provincial Gini coefficient is examined to identify the impact of expenditure inequality on poverty. The simultaneous equation system is estimated to analyze not only direct and indirect effects of the related variables, but also the causality effect between economic growth and the poverty elasticity with respect to both growth and the Gini coefficient.


2021 ◽  
Vol 24 (3) ◽  
pp. 7-25
Author(s):  
Kunofiwa Tsaurai

The study investigates the effect of mining on both poverty and income inequality in Central and Eastern European countries (CEECs) using econometric estimation methods with panel data spanning from 2009 to 2019. Another objective of this paper was to determine if the complementarity between mining and infrastructural development reduced poverty and or income inequality in CEECs. What triggered the study is the failure of the existing literature to have a common ground regarding the impact of mining on poverty and or income inequality. The existing literature on the subject matter is contradictory, mixed, and divergent; hence, it paves the way for further empirical tests. The study confirmed that the vicious cycle of poverty is relevant in CEECs. According to the dynamic generalized methods of moments (GMM), mining had a significant poverty reduction influence in CEECs. The dynamic GMM and random effects revealed that the complementarity between mining and infrastructural development also enhanced poverty reduction in CEECs. Random effects and pooled OLS shows that mining significantly reduced income inequality in CEECs. However, random effects and the dynamic GMM results indicate that income inequality was significantly reduced by the complementarity between mining and infrastructural development. The authorities in CEECs are therefore urged to implement mining growth and infrastructural development-oriented policies in order to successfully fight off the twin challenges of poverty and income inequality.


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