Towards the reversal of poverty and income inequality setbacks due to COVID-19: the role of globalisation and resource allocation

This study contributes to the policy discourse aimed at addressing the welfare setbacks imposed implicitly by the coronavirus pandemic. To this end, we draw macrodata for the period 1990 - 2019 to examine whether globalisation and resource allocation matter for reducing poverty and income inequality...

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Bibliographic Details
Published inInternational review of applied economics Vol. 36; no. 5-6; pp. 647 - 674
Main Authors Ofori, Isaac K., Armah, Mark K., Asmah, Emmanuel E.
Format Journal Article
LanguageEnglish
Published New York Routledge 02.11.2022
Taylor & Francis Ltd
Subjects
COVID-19
Economic Integration
Financial Deepening
Globalisation
Globalization
GMM
Income inequality
Inequality
MENA
Pandemics
Poverty
Regions
Resource allocation
Setbacks
Welfare
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Summary:This study contributes to the policy discourse aimed at addressing the welfare setbacks imposed implicitly by the coronavirus pandemic. To this end, we draw macrodata for the period 1990 - 2019 to examine whether globalisation and resource allocation matter for reducing poverty and income inequality in the Middle East and North Africa (MENA). Robust evidence from the GMM estimator shows that: (1) economic globalisation reduces both poverty and income inequality, (2) though social globalisation heightens income inequality in the region, it has no significant effect on poverty; (3) compared to the effect on poverty, economic globalisation is remarkable in reducing income inequality in the presence of efficient resource allocation. Policy recommendations are provided in line with Agenda 2030 and the rise in social globalisation of the region.
ISSN:0269-2171
1465-3486
DOI:10.1080/02692171.2022.2029367