Social inclusion and poverty reduction in sub-Saharan Africa

Vollständiger Abstract

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Purpose The poverty puzzle persists in sub-Saharan Africa decades after some other regional bodies have recorded substantial gains in their poverty reduction efforts. This study seeks to explore the extent to which social inclusion influences poverty outcomes in sub-Saharan Africa. Design/methodology/approach The study constructs a social inclusion index and its sub-indices using principal component analysis and employs the Lewbel instrumental variable estimation method to test the impact of the computed social inclusion indices on poverty outcomes for 19 sub-Saharan African countries. Findings The results have shown that social inclusion reduces the proportion of the poor and the depth of poverty within sub-Saharan Africa significantly. We also observe a U-shaped relationship between social inclusion and poverty outcomes; thus, social inclusion’s poverty-reducing effect sees a reversal when it hits a certain threshold. Practical implications The study provides the evidence needed to inform the policy discourse on the poverty problem, which continues to plague sub-Saharan Africa. Social implications With sub-Saharan Africa’s position as the region with the worst poverty statistics, the results of this study will prove useful in tackling poverty to ensure improved quality of life. Originality/value This study presents original evidence on social inclusion and its relationship with poverty. Peer review The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-08-2023-0640