Estimating the Effect of Social Expenditure on Poverty Reduction and Growth in High- and Middle-Income Countries: A Dynamic Panel Analysis Applying the GMM Approach

Elsayed Youssef Abdelmajied, Fathy; Abdurrahman Mohammed Khalil, Sameh

doi:10.21608/jces.2022.285151

Estimating the Effect of Social Expenditure on Poverty Reduction and Growth in High- and Middle-Income Countries: A Dynamic Panel Analysis Applying the GMM Approach

نوع المستند : المقالة الأصلية

المؤلفون

¹ Faculty of Commerce, Benha University, Benha, Egypt

² Sadat Academy for Management Sciences, Cairo, Egypt

10.21608/jces.2022.285151

المستخلص

This study's primary objective is to evaluate the impact of social spending on economic development and poverty reduction for a sample of high- and middle-income nations from 2010 to 2018. To achieve this aim, the study applies the GMM approach to two models. First, the study investigate the impact of social spending on reducing poverty in high- and middle-income nations using Model A (the poverty model). Second, the study assesses the impact of social spending on economic growth in high- and middle-income nations using Model B (the growth model). The results of this analysis show that social spending, in both high- and middle-income nations, has beneficial effects on economic growth and negative effects on poverty. Additionally, the study finds that the biggest influences on economic growth, GDP, and poverty are expenditures on health, education, subsidies, and transfers.

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