Research on the Determinants of Poverty in Different Countries

Abstract

This study investigates the factors contributing to variations in poverty levels among different countries. The data in this research is sourced from the World Bank, employing pooled cross-sectional data over time for each variable. A comprehensive set of diagnostic tests is applied to examine the research hypotheses. Contrary to the initial assumption that foreign direct investment and the proportion of the female labour force could alleviate poverty, the findings demonstrate that poverty is primarily influenced by factors such as agriculture, grants, and advancements in science. As a result, it is recommended that organizations and advanced nations adopt distinct approaches when dealing with impoverished countries. Different policies should be implemented to enhance efficiency and capacity in poverty reduction efforts.