International Capital Inflows and Poverty: Evidence from Developing Countries
International Capital Inflows and Poverty: Evidence from Developing Countries

Summary/Abstract: Poverty reduction is an important one of the long-term global goals. This paper analyses the impact of international capital inflows on poverty with a sample covering 26 developing countries in the Asia-Pacific region. A panel dataset is collected over the period of 1980-2015. The results conclude some new findings, which show international capital inflows have two kinds of effects on the poverty rate. The result shows that remittances and trade openness has positive effects on the poverty rate of the economies. On the other hand, external debt and official development assistance have negative effects on poverty in the region. Our findings lead to some valuable implications, in which, the policymakers need more careful when using the external debt as well as official development assistance to support economic growth because these tools can make the more serious on the poverty in countries. However, the policymakers can use the remittances as an important international capital to solve the lack of internal financial resource. Besides, the result points out that trade openness is a good tool for decreasing the poverty rate by trading with the outside.

• Details
• Contents