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Showing papers in "International Journal of Social Economics in 2009"



Journal ArticleDOI
TL;DR: In this paper, the best determinants of foreign direct investment (FDI) in developing countries were investigated, and the interaction of FDI with some FDI determinants had a strong positive effect on economic progress.
Abstract: Purpose – The purpose of this paper is to investigate the best determinants of foreign direct investment (FDI) in developing countries.Design/methodology/approach – This paper investigates whether FDI determinants affect FDI based on both a panel of data (FMOLS‐fully modified OLS) and cross‐section SUR (seemingly unrelated regression) for 24 developing countries, over the period 1983‐2005 for FMOLS and 1976‐2005 for cross‐section SUR.Findings – The interaction of FDI with some FDI determinants have a strong positive effect on economic progress in developing countries, while the interaction of FDI with the total debt service/GDP and inflation have a negative impact. The most important determinant of FDI is the communication variable.Research limitations/implications – The limitations of the study are based on the development of data set which could be found uninterrupted for 30 years in 24 developing countries.Originality/value – The main objective of this study is to define the main FDI determinants that ...

201 citations


Journal ArticleDOI
TL;DR: In this article, the motives that dispose customers in Bahrain to choose a specific bank; the level of familiarity of customers with the most widely used services/products offered by Islamic banks; and the extent of use of those products.
Abstract: Purpose – The purpose of this paper is to report a study into: the motives that dispose customers in Bahrain to choose a specific bank; the level of familiarity of customers with the most widely used services/products offered by Islamic banks; and the extent of use of those productsDesign/methodology/approach – This is the first study conducted in Bahrain to include three types of bank clients: those who bank with conventional banks, those who bank with Islamic banks, and who use both kinds of banks The results are based on a response rate of 655 percent from 1,000 questionnaires distributed Descriptive statistics and non‐parametric statistics (Mann‐Whitney and Kruskal‐Wallis tests) are reported, and factor analysis used to analyze the responsesFindings – It is found that: Islamic religious belief and social responsibility are the two most important factors that determine bank selection Cost benefit is the third most important factor considered in bank selection; clients of conventional and Islamic

196 citations


Journal ArticleDOI
TL;DR: In this article, Sen's concepts of commodities and capabilities are used to develop a framework for understanding the related concepts of social capital, social cohesion, and inclusion, and the analysis on existing empirical research on the social motivations of behavior and the importance on social inclusion in institutional design.
Abstract: Purpose – The purpose of this paper is to delineate the concepts of social inclusion, social cohesion, and social capital.Design/methodology/approach – This paper reviews the existing literature and uses the ideas of Amartya Sen to develop a research and policy approach to these concepts.Findings – Specifically, the paper uses Sen's concepts of commodities and capabilities to develop a framework for understanding the related concepts of social capital, social cohesion, and inclusion.Research limitations/implications – While the approach is largely theoretical, the paper bases the analysis on existing empirical research on the social motivations of behavior and the importance on social inclusion in institutional design.Practical implications – Practically, it is hoped that the framework provides a platform for empirical research on social inclusion and cohesion, two concepts that have largely been ignored in the research on social capital.Originality/value – As such, this paper can serve as a guide to empi...

172 citations



Journal ArticleDOI
TL;DR: In this paper, the authors examined the inter-temporal causal relationship between financial sector development and poverty reduction in Zambia, using the newly developed autoregressive distributed lag-bounds testing procedure, which has numerous advantages, especially when the sample size is small.
Abstract: Purpose – The purpose of this paper is to examine the inter‐temporal causal relationship between financial sector development and poverty reduction in Zambia. The paper attempts to answer one critical question: does financial sector development in Zambia lead to poverty reduction?Design/methodology/approach – The paper uses the newly developed autoregressive distributed lag‐bounds testing procedure, which has numerous advantages, especially when the sample size is small. In addition, the paper uses three proxies of financial development, namely broad money supply (M2/GDP), domestic credit to the private sector as a ratio of gross domestic product (DCP/GDP) and domestic money bank assets (DMBA), against private per capita consumption, a proxy for poverty reduction.Findings – When the broad money supply ratio (M2/GDP) is used as a proxy for financial sector development, poverty reduction seems to cause the development of the financial sector. However, when the DCP and the DMBA are used, financial developmen...

77 citations



Journal ArticleDOI
TL;DR: In this paper, the authors examined the factors contributing to credit repayment behavior among the members of savings and credit cooperative societies in rural Rwanda and employed a binary logistic regression empirical model to estimate the contribution of each variable to credit repay rat...
Abstract: Purpose – Like other developing countries, Rwandan rural credit market is repressed, shallow, segmented, inefficient and dual structured where both formal and informal financial systems operate side by side. While the later has been playing a predominant role, cooperative societies have emerged as an apt method of increasing the delivery of formal rural credit and savings facilities on sustainable and non‐exploitative terms albeit of financial imprudence stemming from poor credit repayment records. Thus, the purpose of this paper is to examine the factors contributing to credit repayment behaviour among the members of savings and credit cooperative societies in rural Rwanda.Design/methodology/approach – Both exploratory and descriptive designs are used for primary data collection on variables contributing to the repayment behaviour in savings and cooperative societies. Thereafter, a binary logistic regression empirical model is employed to estimate the contribution of each variable to credit repayment rat...

57 citations


Journal ArticleDOI
TL;DR: In this paper, the authors argue that there is a positive relationship between current globalisation, unemployment, inequality, and poverty, which paves a vista for further academic discourse.
Abstract: Purpose – This paper contends that there is a positive relationship between current globalisation, unemployment, inequality and poverty, which paves a vista for further academic discourse.Design/methodology/approach – As a meta‐analytical study, the paper relied on secondary data. It is a qualitative study, which is based on conceptual analysis, theory building and “emic” perspective (authors' viewpoint).Findings – A relationship between current globalisation, unemployment, inequality and poverty should be investigated further. Unemployment increases levels of inequality and poverty within society. Although bequeathed with various names and definitions, the logics of current globalisation seem to have exacerbated the problem of global unemployment, the corollary of which is endemic inequality and poverty.Practical implications – Increases in income inequality and poverty over the past decades, can be attributed to globalisation. Therefore, within the domain of unemployment, inequality and poverty in the e...

56 citations


Journal ArticleDOI
TL;DR: In this article, a system dynamics approach is used to model, identify and help manage the development path of human development and economic growth in Pakistan given alternative policies for public expenditure on HD and economic indicators.
Abstract: Purpose – It is now widely recognized that human development (HD) and economic growth (EG) are intertwined in two‐way feedback processes either leading to an upward spiral of development or a poverty trap. This concept is used to overcome one of the limitations of a previous study by Qureshi which assumes exogenous gross domestic product (GDP). With endogenous GDP formulation, the impact of public expenditure on HD and EG in Pakistan is examined.Design/methodology/approach – System dynamics approach is used to model, identify and help manage the development path of HD and EG in Pakistan given alternative policies for public expenditure on HD and EG. For this purpose the model endogenously determines path of population cohorts, and education, health and economic indicators.Findings – The simulation results suggest that the current level of public expenditure on HD is extremely low and any further decrease will have irreversible negative impact on HD and economic indicators, even if the resources so saved a...

53 citations


Journal ArticleDOI
TL;DR: In this paper, a United Nations (UN) three-year research project examines the causes and effects of conflicts in the arid and semi-arid lands of Northern Kenya, focusing on cattle rustling, proliferation of small arms, competition over scarce resources and conflict between refugees and local communities.
Abstract: – Within the theoretical context of human security, this United Nations (UN) three‐year research project examines the causes and effects of conflicts in the arid and semi‐arid lands of Northern Kenya. The purpose of this paper is to address the human security concerns arising out of conflict, displacement, migration and poverty. The people who live in the area are mainly nomadic pastoralists., – A review of previous empirical research and ongoing field studies are used to examine four problem areas: cattle rustling, proliferation of small arms, competition over scarce resources and conflict between refugees and local communities., – Seeking access to water and green pastures, the nomads generally follow their cattle across the region, and their movement is not confined to Kenya alone. They cross and re‐cross international boundaries to and from Ethiopia, Sudan, Somalia and Uganda resulting in conflicts over water and pasture. Resource competition in a fragile economy has had grave consequences for the economic security of families and internally displaced people., – The North Rift and North Eastern regions of Kenya are the most underdeveloped area of the country and suffer from a high level of human insecurity, with more than three‐quarters of the population living below the poverty line. This UN project seeks an empirical understanding of the causes of conflict and ways to build the capacity of a vulnerable population to gain both freedom from fear and freedom from want.

Journal ArticleDOI
TL;DR: In this paper, the authors explored the existence of U-shape relationship in the case of Pakistan and if it does exist, what factors determine this Ushape relationship?Design/methodology/approach, for the estimation purpose data according to provinces and regions are pooled for three years.
Abstract: Purpose – Several studies have provided empirical evidence that female labor force participation rate exhibits a U‐shape during the process of economic development. The purpose of this paper is to explore the existence of U‐shape relationship in the case of Pakistan and if it does exist, what factors determine this U‐shape relationship?Design/methodology/approach – For the estimation purpose data according to provinces and regions are pooled for three years. The model is estimated using a simple fixed effect test.Findings – The results affirm the existence of U‐shaped relationship. Estimation of the pooled data attributed this U‐shape relationship with female education attainment, sectoral employment share, unemployment rate, wages and marital status. Results confirm that high rate of economic development is encouraging the female participation in the labor force by increasing the work opportunities for females. The females are taking full advantage of these increased opportunities by increasing their lev...

Journal ArticleDOI
TL;DR: In this article, the authors test the theoretical predictions of the social capital investment model and examine the relationships between different forms of social capital and subjective happiness in Taiwan, finding that the findings are mostly consistent with the characteristics implied by the social network investment model.
Abstract: Purpose – The purpose of this paper is to test the theoretical predictions of the social capital investment model and examine the relationships between different forms of social capital and subjective happiness in Taiwan.Design/methodology/approach – This paper uses the data from the Survey of Social Development Trends in Taiwan 2003 for empirical investigations with ordinary least squares and ordered probit estimations.Findings – The findings are mostly consistent with the characteristics implied by the social capital investment model. Moreover, to some extent, the individual impacts of different measures of social capital – including contributions to non‐profit organizations, volunteering, social and community involvement, and trust – on subjective happiness are identified.Practical implications – The results from this paper provide valuable policy implications for researchers and policymakers who are concerned about the impacts of changes of social structures and political institutions on people's well...

Journal ArticleDOI
TL;DR: In this paper, the authors present more comprehensive and accurate measures of land rents and values, and several modes of raising revenues from them besides the conventional property tax, and identify 16 elements of land's taxable capacity that received authorities either trivialize or omit.
Abstract: Purpose – A tax based on land value is in many ways ideal, but many economists dismiss it by assuming it could not raise enough revenue. Standard sources of data omit much of the potential tax base, and undervalue what they do measure. The purpose of this paper is to present more comprehensive and accurate measures of land rents and values, and several modes of raising revenues from them besides the conventional property tax.Design/methodology/approach – The paper identifies 16 elements of land's taxable capacity that received authorities either trivialize or omit. These 16 elements come in four groups.Findings – In Group A, Elements 1‐4 correct for the downward bias in standard sources. In Group B, Elements 5‐10 broaden the concepts of land and rent beyond the conventional narrow perception, while Elements 11‐12 estimate rents to be gained by abating other kinds of taxes. In Group C, Elements 13‐14 explain how using the land tax, since it has no excess burden, uncaps feasible tax rates. In Group D, Eleme...

Journal ArticleDOI
TL;DR: In this paper, the authors examine the causes of slow progress of good governance by scrutinizing its conceptual foundation and find that governance literature treats the state and government as synonymous and by that confuses their political nature.
Abstract: Purpose – Since the 1990s, most bilateral and supranational donor agencies have been pursuing “good governance” as their priority development policy. Yet, in their own evaluation, the speed of progress of this gargantuan governance project has remained unsatisfactory. The purpose of this paper is to examine the causes of this slow progress by scrutinizing its conceptual foundation.Design/methodology/approach – The analytical approach of this paper is purely speculative, which is occasionally supported by real world data and socio‐political evidences. Since the paper uses Governance for Sustainable Human Development – A UNDP Policy Document as the ruling reference material, the paper has been so titled.Findings – First, defining governance as a process misrepresents its problematic nature, which is primarily political and therefore diverts world attention from its root‐causes. Second, governance literature treats the state and government as synonymous and by that confuses their political nature. Finally, t...

Journal ArticleDOI
TL;DR: In this paper, a multidimensional concept of child poverty is proposed to evaluate poverty among children using fuzzy set theory, and the socio-demographic and economic characteristics that most affect deprivation risk by estimating a discrete choice model.
Abstract: Purpose – The aim of this paper is to evaluate poverty among children using a multidimensional concept of child poverty.Design/methodology/approach – In light of this conceptualization, the paper applies methodological framework that uses fuzzy set theory to evaluate deprivation intensity among children. It also investigates the socio‐demographic and economic characteristics that most affect deprivation risk by estimating a discrete choice model.Findings – Results show that children included in large families or with uncommon compositions are particularly at risk. Unemployment of parents also plays an important role in determining deprivation. Children's deprivation is particularly affected by issues related to education, health, housing and social integration.Originality/value – This paper proposes a concept that is child‐cantered. It also constructs measures of child poverty/deprivation based on specific child indicators of well‐being. Finally uses the paper econometric techniques to evaluate socio‐demo...

Journal ArticleDOI
TL;DR: In this paper, the authors analyzed the impact of economic conditions on various categories of criminal activities in Malaysia for the period 1973-2003 and found that strong economic performances have a positive impact on murder, rape, assault, daylight burglary, and motorcycle theft.
Abstract: Purpose – The purpose of this paper is to analyze the impact of economic conditions on various categories of criminal activities in Malaysia for the period 1973‐2003.Design/methodology/approach – The autoregressive distributed lag bounds testing procedure was employed as the main tool. Dynamic ordinary least squares was also used to check the robustness of the results.Findings – The results indicate that murder, armed robbery, rape, assault, daylight burglary, and motorcycle theft exhibit long‐run relationships with economic conditions, and the causal effect in all cases runs from economic conditions to crime rates and not vice versa. In the long‐run, strong economic performances have a positive impact on murder, rape, assault, daylight burglary, and motorcycle theft, while on the other hand, economic conditions have negative impact on armed robbery.Research limitations/implications – Further researches using other macroeconomic variables and also other countries are encouraged.Practical implications – Th...

Journal ArticleDOI
TL;DR: In this article, the authors show the link between Islamic banking and micro-financing and show that the two practices are also practically linked and that it is possible to combine them and to convince Islamic religious leaders.
Abstract: Purpose – The purpose of this paper is to show the link between Islamic banking and microfinancing.Design/methodology/approach – The approach used in this paper is first to describe the basic principles of Islamic banking and microfinancing and then to show the link between the two financial practices. In general, it is believed that the two practices are not compatible since microfinance allows interest payments on loans and Islamic banking prohibits interest payment based on Islamic law, sharia. Both practices, however, promote equality and fairness for all members of the society and encourage entrepreneurship by giving collateral‐free loans to the poor. The two practices, therefore, are ideologically linked. This paper shows that they are also practically linked.Findings – Islamic religious leaders usually dismiss microfinancing because microfinancing requires high‐interest rate which is against Islamic law. This paper finds that it is possible to combine the two practices and to convince Islamic relig...

Journal ArticleDOI
Kavous Ardalan1
TL;DR: In this article, the authors show how different philosophical schools of thought view the relation between globalization and culture differently, and how each of these four broad categories view the relations between globalization this article.
Abstract: Purpose – The purpose of this paper is to show how different philosophical schools of thought view the relation between globalization and culture differently.Design/methodology/approach – This paper places the existing philosophical schools of thought into four broad categories: functionalist, interpretive, radical humanist, and radical structuralist. This paper then shows how each of these four broad categories view the relation between globalization and culture differently.Findings – This paper finds that the functionalist paradigm views globalization and culture as universal, the interpretive paradigm views globalization and culture as particular, the radical humanist paradigm views globalization and culture as a domination ideology, and the radical structuralist paradigm views globalization and culture as causing conflict between classes.Research limitations/implications – This paper assumes that each school of thought can be located in one of the four broad categories of philosophical schools of thou...

Journal ArticleDOI
TL;DR: The authors revisited old questions of the proper subject and bounds of economics: does economics study "provisioning" or markets? or a method of reasoning, self-interested rational optimization?Design/methodology/approach: A variety of scholars and others in many fields make use of a taxonomy of society consisting of three "spheres": markets, governments, and communities.
Abstract: Purpose – This paper revisits old questions of the proper subject and bounds of economics: does economics study “provisioning”? or markets? or a method of reasoning, self‐interested rational optimization?Design/methodology/approach – A variety of scholars and others in many fields make use of a taxonomy of society consisting of three “spheres”: markets, governments, and communities. It is argued here that this tripartite taxonomy of society is fundamental and exhaustive. A variety of ways of understanding this taxonomy are explored, especially Fiske's (1991, 2004) “Relational models theory.” Then – after communities and their products, social goods, are defined more thoroughly – a visual model of interactions among the three spheres is presented.Findings – The model is first used briefly to understand the historical development of markets. The model is then applied to understanding how economic thinking and market ideology, including the notion of social capital, can be destructive of communities and thei...

Journal ArticleDOI
TL;DR: It was found that despite the increase in most components of health care spending in Nigeria, the health status of the average Nigerian and the condition of health infrastructure has not improved appreciably and the difference in impact of spending between the poor and the non-poor could be substantial.
Abstract: Purpose – The purpose of this paper is to examine whether or not government health care spending reduces the poor‐rich differences in health status. Specifically, it aims to assess the health status of the poor vis‐a‐vis government health spending in Nigeria.Design/methodology/approach – Regression analysis was carried out using the Ordinary Least Square method of estimation while secondary data was used.Findings – It was found that despite the increase in most components of health care spending in Nigeria, the health status of the average Nigerian and the condition of health infrastructure has not improved appreciably. Also, the poor have significantly worse health status than the non‐poor and they (the poor) are more strongly affected by public spending on health care relative to the non‐poor. Thus, the difference in impact of spending between the poor and the non‐poor could be substantial.Originality/value – This study provides information that will help reposition policies on government spending, espe...

Journal ArticleDOI
TL;DR: In this paper, the authors investigate why financial fragility carries different definitions in the economic literature and compare the different approaches to the definition and detection of financial fragilities using corresponding correspondences.
Abstract: Purpose – The purpose of this study is to investigate why “financial fragility” carries different definitions in the economic literature This is a useful task as the detection of “financial fragility” depends, in part, upon how one defines it According to Post Keynesian economists, financial fragility is a process that can culminate in financial instability (an event) For mainstream or New Keynesian economists, financial fragility has been traditionally defined as a state in which a shock can trigger instability More recently, however, mainstream economists have recast their definition as a particular form of financial instability – an event Each definition of financial fragility is intimately linked to the theoretical foundation upon which it rests This carries important implications for the ability of policymakers to assess and manage the health of an economyDesign/methodology/approach – The different approaches to the definition and detection of financial fragility are compared using correspondi

Journal ArticleDOI
TL;DR: In this article, the authors measure and rank nation-states' governance effectiveness and quality on a quantifying scientific basis, by means of data envelopment analysis, by adding the equality in income distribution as an output.
Abstract: Purpose – The purpose of this paper is to measure and rank nation‐states' governance effectiveness and quality on a quantifying scientific basis, by means of data envelopment analysis.Design/methodology/approach – The principles are first analyzed from a theoretical and normative standpoint, linking to earlier literature. One dimension of the approach is adding the equality in income distribution as an output. Another dimension boils down to environmental performance.Findings – The addition of the Gini index affects the ranking of the developing countries in a more significant manner. Similar results are obtained when the authors add the environmental performance as an input. Another interesting result suggests that conventional ranking methods (i.e gross domestic product per capita or human development index) could be used for representing the country's efficiency only for developed countries.Research limitations/implications – Future research may be aimed at applying the developed methodology to more co...

Journal ArticleDOI
TL;DR: In this paper, the authors examined the supernatural punishment theory and found that the theory postulates that religion increases cooperation because religious people fear the retributions that would cause them to turn against each other.
Abstract: Purpose – The purpose of this paper is to examine the supernatural punishment theory. The theory postulates that religion increases cooperation because religious people fear the retributions that m ...


Journal ArticleDOI
TL;DR: A SWOT analysis of Bangladesh's overall economy with special focus on strengths, weaknesses, opportunities, threats (SWOT) analysis, choosing right foreign direct investment (FDI) strategy, remittance inflow, lessons from South East Asian nations, risk factors and aftermath is presented in this article.
Abstract: Purpose – This paper aims to examine Bangladesh's overall economy with special focus on strengths, weaknesses, opportunities, threats (SWOT) analysis, choosing right foreign direct investment (FDI) strategy, remittance inflow, lessons from South East Asian nations, risk factors and aftermath.Design/methodology/approach – Phenomenological research has raised awareness and increased insight into Bangladesh's overall strength, weakness, opportunity and threat in terms of her current position in world economy. The approach is based on observation of the business environment, online research, a close watch on Bangladesh's economy, analysis of newspapers, books, brainstorming with co‐researchers for five years and 30 years of living and working experience in developing countries.Findings – The research has found that Bangladesh is going to encounter series of economic hurdles in near future. A SWOT analysis of Bangladesh has uncovered her overall strength, weakness, opportunity and threat in terms of her curren...

Journal ArticleDOI
TL;DR: In this article, the authors examine power from a multi-theoretical perspective by comparing and analyzing different views and definitions of power in order to use the findings for further studying this construct as a key element for managerial purposes in the interorganizational context.
Abstract: Purpose – The purpose of this paper is to examine power from a multi‐theoretical perspective by comparing and analyzing different views and definitions of power in order to use the findings for further studying this construct as a key element for managerial purposes in the interorganizational context.Design/methodology/approach – An overview of the literature is conducted examining the power from sociological, psychological and managerial perspectives specifying views on power, its sources and consequences of its use offered by selected theories.Findings – This paper presents the opinion that the definitions of power by different theories resemble each other and the main differentiations in conceptualizations of power stem mostly from the differences in capturing sources and consequences of power. Power generally refers to the ability, capacity or potential to get others do something, to command, to influence, to determine or to control the behaviors, intentions, decisions or actions of others in the purs...

Journal ArticleDOI
TL;DR: In this paper, the authors proposed a typology that links the characterization of the irrigated farms with their structural and functional aspects for the context of sustainable irrigated agricultural development, and identified those farms that fall into broad categories of unsustainability.
Abstract: Purpose – The purpose of this paper is to propose the typology that links the characterization of the irrigated farms with their structural and functional aspects for the context of sustainable irrigated agricultural development.Design/methodology/approach – East Mitidja scheme is selected for this study. About 134 farms are selected from the irrigation scheme. Multiple correspondence and ascendant hierarchical classification are used as data mining tools to characterize the typology of irrigated farms.Findings – The typology provides a way of understanding the diversity of farms with regard to their socio‐economic environment. It also helps to identify those farms that fall into broad categories of unsustainability. The latest implemented agricultural and irrigation policy has a differential effect on various types of farmers, favoring some and discouraging others. The socio‐economic constraints have prevented the implementation of various development programs. This situation leads to the unsustainable e...

Journal ArticleDOI
TL;DR: In this paper, the authors study the magnitude and various causes of the global food crisis and suggest policy measures towards the solution of the food crisis problem, and verify the food price index of UN Food and Agriculture Organization and qualititative information to highlight the international reaction/initiative/scenario in food crisis regime.
Abstract: Purpose – The purpose of this paper is to study the magnitude and various causes of the global food crisis. Further, the paper aims to suggest policy measures towards the solution of global food crisis problem.Design/methodology/approach – To verify the problem of global food crisis, the paper mainly utilizes food price index of UN Food and Agriculture Organization (FAO) and qualititative information to highlight the international reaction/initiative/scenario in food crisis regime.Findings – Food security exists when all people, at all times, have physical and economic access to sufficient, safe and nutritious food for a healthy and active life. Unlike nutrition, where treatment is guided by standard protocols based on human nutritional requirements, food security must take into account a wide range of factors such as climate, geography, socio‐economic systems, and political structures. The challenges in achieving food security are to reduce poverty, increase food security without further degrading natura...

Journal ArticleDOI
TL;DR: In this paper, the authors examined why some countries reduce poverty more quickly than others and found that countries with sustainable agricultural growth, foreign capital flows, and better infrastructure tend to achieve a faster reduction in poverty.
Abstract: Purpose – This is an account‐taking paper on the status of global poverty and its reduction. The purpose of this paper is to examine why some countries reduce poverty more quickly than others.Design/methodology/approach – The data on the population living below $1 a day during 2000 and 2002 reported in the World Development Indicators (WDI) 2004 have been used to identify the status and determinants of poverty across countries. Next, using the national data on poverty level with respect to countries having a $1 poverty level of more than 3 percent as reported in WDI‐2004, the rate of change in the poverty level was calculated. In both cases, the explained and the explanatory variables used in the multiple regression frameworks were selected based on theory and other empirical findings.Findings – The results indicate that countries with sustainable agricultural growth, foreign capital flows, and better infrastructure tend to achieve a faster reduction in poverty. Research limitations/implications – In a cr...