Institutions and Poverty: A Critical Comment Based on Evolving Currents and Debates

Social Indicators Research. Social Indicators Research, 139(1), pp. 99–117 (August, 2018).

21 Pages Posted: 12 Jan 2015 Last revised: 7 Aug 2018

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Oasis Kodila-Tedika

University of Kinshasa - Department of Economics

Date Written: December 10, 2014

Abstract

Tebaldi & Mohan (2010, JDS) have established an empirical nexus between institutions and monetary poverty. We first, reflect their findings in light of recent development models, debates and currents in post-2010 literature. We then re-examine their results with a non-monetary and multidimensional poverty indicator first published in 2010. Our findings confirm the negative relationship and the nexus disappears with control for average income. Hence, confirming the conclusions of the underlying study that institutions could have an indirect effect on multidimensional poverty. In other words, the poverty eradication effect of institutions is through income-average as opposed to income-inequality. We discuss the confirmed findings in light of implications to: (1) debates over preferences in economic rights; (2) China’s development/outlook; (3) the Chinese model versus sustainable development; (4) the Fosu conjectures; (5) Piketty’s & Kuznets’ celebrated literatures and (6) future research to ascertain the inequality mechanism.

Keywords: poverty; institutions

JEL Classification: O11; P14; P16; I32; O17; O43

Suggested Citation

Asongu, Simplice and Kodila-Tedika, Oasis, Institutions and Poverty: A Critical Comment Based on Evolving Currents and Debates (December 10, 2014). Social Indicators Research. Social Indicators Research, 139(1), pp. 99–117 (August, 2018).. Available at SSRN: https://ssrn.com/abstract=2548085 or http://dx.doi.org/10.2139/ssrn.2548085

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Oasis Kodila-Tedika

University of Kinshasa - Department of Economics ( email )

Kinshasa
Democratic Republic of the Congo

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