Investigating Influential Factors on Improving Poverty Conditions in Latin America

Keisuke Mitsumoto,Koichi Yamaura

doi:10.4236/jhrss.2018.62035

Abstract

The objective of this study is to determine the spillover effects of various international supports for poverty in Paraguay. A vector autoregressive model is used to investigate a dynamic linkage among five components: prevalence of undernourishment, food intake, gross domestic products (GDP) per capita, primary school completion rate, and unemployment rate. We found that the primary school completion rate has the largest spillover effects for reducing poverty except GDP per capita. Supporting international agencies such as the Inter-American Development Bank can keep or invest more money in early education sectors, and Paraguay can obtain not only direct supports but also larger indirect effects.

Highlights

Poverty is a crucial global issue that must be solved; one of the Millennium Development Goals (MDGs) set by the United Nations (UN) in 2000 is to “eradicate extreme poverty and hunger” (Table 1)
A vector autoregressive model is used to investigate a dynamic linkage among five components: prevalence of undernourishment, food intake, gross domestic products (GDP) per capita, primary school completion rate, and unemployment rate
We found that the primary school completion rate has the largest spillover effects for reducing poverty except GDP per capita

Summary

Introduction

Poverty is a crucial global issue that must be solved; one of the Millennium Development Goals (MDGs) set by the United Nations (UN) in 2000 is to “eradicate extreme poverty and hunger” (Table 1). The UN adopted the Sustainable Development Goals (SDGs) in 2015 to replace the MDGs. The SDGs expand the MDGs, and they include seventeen development goals including “no poverty”; this goal focuses on ending poverty in all forms and dimensions by 2030 (Table 1). Twenty percent of the population in under-developed countries have still lived on less than US $1.90 a day, today. Twenty percent of the population in under-developed countries have still lived on less than US $1.90 a day, today1

Objectives

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Conclusion