Relative Prices Of Non-Tradable Versus Tradable Goods And Poverty In Sub-Saharan Africa

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Résumé

This paper assessed the effects of relative prices on poverty in Sub-Saharan Africa. The study covers a sample of 27 countries of Sub-Saharan Africa over the period 1992-2016.The formulation of a dynamic panel model and the estimation using the techniques of generalized moments (GMM) show that the relative prices of tradable goods by non-tradable goods have a negative and significant influence on poverty gap and on the proportion of the poor population in Sub-Saharan Africa. The results involve increasing and diversifying the local supply of manufactured goods and investing in technology to improve the technological balance of payments.

Mots-clés

Poverty, Sub-Saharan Africa, relative prices