Trade Openness, Human Capital and Poverty Alleviation in West Africa: A Dynamic Panel Data Investigation
- Rasaki Stephen Dauda
- ( paper pages. 217 - 252 )
Abstract
West Africa is one of
the sub-regions threatened with development challenges globally and in sub-
Saharan Africa. Fourteen out of her sixteen countries are in the low human
development category while the remaining two fall under the medium group. A greater
proportion of her population lives in multidimensional poverty, with a very
high degree of intensity of deprivation. This study assessed the effect of
trade openness and human capital on poverty in West Africa over the period
2005–2018, with focus on 16 countries. A dynamic panel data model, estimated
using the Arellano-Bover/Blundell-Bond System Generalized Method of Moments was
employed. The findings revealed that human capital contributed significantly to
poverty reduction in West Africa, whereas, trade openness did not reduce
poverty significantly except through human capital (education). Therefore, for
trade liberalization to enhance poverty alleviation in West Africa, countries
in the sub-region should invest substantially in human capital development
activities (tertiary education).
Citation
Rasaki Stephen Dauda.
2022.
"Trade Openness, Human Capital and Poverty Alleviation in West Africa: A Dynamic Panel Data Investigation"
The Nigerian Journal of Economic and Social Studies,
64 (2): 217 - 252.
JEL Classification
F14, F41, I15, I25
