The Relationship Between Economic Growth And Poverty Reduction

Our work examines the relationship between economic growth and poverty reduction in Cote d’Ivoire using a time series of data covering the period 1985 to 2017.Cointegration tests of Johansen and unit root were performed by using STATA 14 to determine stationarity and the long-term relationship between variables.The VaR was conducted to examine the results of per capita gross domestic product,the growth rate of unemployment,and public spending on the consequence of poverty.Our results show that there is a positive relationship between public spending and the human development index(indirect indicator of the incidence of poverty).The ratio of GDP per capita is in line with expectations a priori and describes a negative relationship with the incidence of poverty,while unemployment has a negative impact on poverty reduction.As a result,the government should put more emphasis on job creation by focusing on labor-intensive sectors,mainly the industrial and agricultural sectors.