POVERTY, INEQUALITY, ECONOMIC WELLBEING AND THE AFRICAN ECONOMY: PANEL DATA ANALYSIS (2000 – 2020)
POVERTY, INEQUALITY, ECONOMIC WELLBEING AND THE AFRICAN ECONOMY: PANEL DATA ANALYSIS (2000 – 2020)

Summary/Abstract: High GDP per capita and growth rate seems not to spur greater reduction in poverty and inequality in most African countries. Thus, this study examined the possible cause of this unparalleled situation and established the nature of the relationship between the much better measure of economic well-being (GDP or HDI) using panel data analysis on cross section data collected for 15 countries in Sub Saharan Africa (SSA). Conducting the Hausman test, it was discovered that the Fixed Effect Method rather than Random effect Method was more efficient in interpreting the behavior of GDP per capita and HDI. The results showed that HDI is a better measure and determinant of wellbeing than GDP per capital. Furthermore, the variables of the model were all statistically significant and correctly signed. The study recommended that governments should embark on programs that directly impact the quality of life of the people.

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