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<p>This paper examines how economic growth influences multidimensional poverty across more than 80 countries over two decades. Using a first-difference model, it links changes in gross domestic product (GDP) to shifts in the Multidimensional Poverty Index (MPI) and its subcomponents, accounting for income level, region, and resource dependence. Consistent with earlier studies, the results show that growth generally lowers multidimensional poverty, but the effect is smaller in low-income economies, Sub-Saharan Africa, Latin America and the Caribbean, and resource-dependent countries. Disaggregating GDP growth reveals that gains driven by total factor productivity, household consumption, and resource-preserving activities reduce MPI most strongly. In contrast, growth stemming from human capital accumulation, capital deepening, investment, government spending, exports, or imports has little measurable impact. These findings suggest that policies promoting productivity-led, consumption-based, and environmentally sustainable growth are most effective for reducing multidimensional poverty.</p>

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Understanding How Economic Growth Dimensions Influence Multidimensional Poverty: Evidence from 80+ Countries Over Two Decades

  • 期刊论文

  • 发表日期：

    2025年11月25日

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  • Francis Mulangu,
  • Michael Keller,
  • Jean-Pascal Nganou,
  • Mokhtar Benlamine

摘要

This paper examines how economic growth influences multidimensional poverty across more than 80 countries over two decades. Using a first-difference model, it links changes in gross domestic product (GDP) to shifts in the Multidimensional Poverty Index (MPI) and its subcomponents, accounting for income level, region, and resource dependence. Consistent with earlier studies, the results show that growth generally lowers multidimensional poverty, but the effect is smaller in low-income economies, Sub-Saharan Africa, Latin America and the Caribbean, and resource-dependent countries. Disaggregating GDP growth reveals that gains driven by total factor productivity, household consumption, and resource-preserving activities reduce MPI most strongly. In contrast, growth stemming from human capital accumulation, capital deepening, investment, government spending, exports, or imports has little measurable impact. These findings suggest that policies promoting productivity-led, consumption-based, and environmentally sustainable growth are most effective for reducing multidimensional poverty.