Impact of Poverty and Inequality on Economic Growth In East Africa

Abstract

The primary aim of this study is to evaluate how a group of selected countries align with the
theoretical expectations regarding the impact of poverty and inequality on economic growth.
The study conducted an econometric analysis through using panel data that were collected for 6
east African developing countries over period 2015-2024 to determine how poverty and
inequality affect economic growth in these countries. The data was analyzed using fixed effect
model. The study used population below poverty line, Gini index, and GDP per capita as
indicators of for poverty, inequality, and economic growth respectively. The study employed
Gross capital formation, investment rate, and population growth rate as control variables data
was collected from World Bank indicators and other known websites sources. The study
discussed the resulst by using both descriptive and regression results to draw the conclusion and
to indicate future direction through recommendations.