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Unraveling the Nexus: Social Spending, Development, and Breaking the Cycle of Poverty

This study examines the role of development, as indicated by the Human Development Index (HDI), in shaping the connection between social public spending on health, education, and social protection and poverty in terms of the poverty headcount ratio at $3.65/day (2017 PPP). Empirical analysis is used...

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Main Author: Shehata, Yasmin
Format: Thesis
Published: AUC Knowledge Fountain 2024
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access_status_str Open Access
author Shehata, Yasmin
author_browse Shehata, Yasmin
author_facet Shehata, Yasmin
author_sort Shehata, Yasmin
collection Thesis
description This study examines the role of development, as indicated by the Human Development Index (HDI), in shaping the connection between social public spending on health, education, and social protection and poverty in terms of the poverty headcount ratio at $3.65/day (2017 PPP). Empirical analysis is used to this end, employing a panel dataset of 68 countries at varied stages of development over the period 1995-2021. The empirical model is estimated using the Fixed Effects Two-stage Least Squares (2SLS). It is also re-estimated using the Instrumental Variable Generalized Method of Moments (IV-GMM) and Limited Information Maximum Likelihood (LIML) to test the robustness of the results. The 2SLS results reveal a significant negative effect of development on the effectiveness of social public spending to reduce poverty. In other words, the correlation between social public spending and poverty becomes more negative at higher HDI levels. These results are robust to different estimation techniques.
format Thesis
id oai:fount.aucegypt.edu:etds-3344
institution American University in Cairo (Egypt)
last_indexed 2026-06-10T12:35:55.364Z
license_str Not specified — see source repository
provenance_str_mv Harvested via OAI-PMH from AUC Knowledge Fountain — bepress
publishDate 2024
publishDateRange 2024
publishDateSort 2024
publisher AUC Knowledge Fountain
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source_str AUC Knowledge Fountain — bepress
spelling oai:fount.aucegypt.edu:etds-3344 Unraveling the Nexus: Social Spending, Development, and Breaking the Cycle of Poverty Shehata, Yasmin This study examines the role of development, as indicated by the Human Development Index (HDI), in shaping the connection between social public spending on health, education, and social protection and poverty in terms of the poverty headcount ratio at $3.65/day (2017 PPP). Empirical analysis is used to this end, employing a panel dataset of 68 countries at varied stages of development over the period 1995-2021. The empirical model is estimated using the Fixed Effects Two-stage Least Squares (2SLS). It is also re-estimated using the Instrumental Variable Generalized Method of Moments (IV-GMM) and Limited Information Maximum Likelihood (LIML) to test the robustness of the results. The 2SLS results reveal a significant negative effect of development on the effectiveness of social public spending to reduce poverty. In other words, the correlation between social public spending and poverty becomes more negative at higher HDI levels. These results are robust to different estimation techniques. 2024-06-12T07:00:00Z thesis application/pdf https://fount.aucegypt.edu/etds/2301 https://fount.aucegypt.edu/context/etds/article/3344/viewcontent/Yasmin_Shehata_Thesis.pdf Theses and Dissertations AUC Knowledge Fountain Poverty Development Social Spending 2SLS Economics
spellingShingle Poverty
Development
Social Spending
2SLS
Economics
Shehata, Yasmin
Unraveling the Nexus: Social Spending, Development, and Breaking the Cycle of Poverty
title Unraveling the Nexus: Social Spending, Development, and Breaking the Cycle of Poverty
title_full Unraveling the Nexus: Social Spending, Development, and Breaking the Cycle of Poverty
title_fullStr Unraveling the Nexus: Social Spending, Development, and Breaking the Cycle of Poverty
title_full_unstemmed Unraveling the Nexus: Social Spending, Development, and Breaking the Cycle of Poverty
title_short Unraveling the Nexus: Social Spending, Development, and Breaking the Cycle of Poverty
title_sort unraveling the nexus social spending development and breaking the cycle of poverty
topic Poverty
Development
Social Spending
2SLS
Economics
url https://fount.aucegypt.edu/etds/2301
https://fount.aucegypt.edu/context/etds/article/3344/viewcontent/Yasmin_Shehata_Thesis.pdf
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