Underlying the Impact of Economic, Social, and Governance Adaptation on Poverty Reduction Under the Shadow of External Financial Inflows—Panel Estimation from the Sub-Saharan Region

Social sustainability contributes to sustainable development in multiple ways. Providing justice in society encourages the distribution of economic resources equally. Currently, more than 700 million people live in extreme poverty today and are struggling to fulfil the most basic needs like health education and access to water and sanitation. Due to the pandemic crises, global poverty increased by 8%, and on the other hand, pandemic crises pushed over 70 million into extreme poverty. This chapter explores the impact of financial inflow on poverty in the Sub-Saharan Africa region under the shadow of adaptation of economic, social, and governance readiness. By using a panel of 38 Sub-Saharan African countries over the period of 2000–2022, applying fixed effect Driscoll-Kraay standard error estimation, and also a two-step system generalized method of moments estimation, the findings reveal that economic prosperity, foreign direct investment, economic and social readiness decrease poverty in sample countries. Similar results are also affirmed by using fixed effect panel quantile regression estimation.