A Panel Data Analysis of Poverty Dynamics and Public Policy Response in Selected West African Countries

Many household in West Africa, just as in many developing countries are frequently confronted by severe household-level-shocks and community based risks such as hunger, crop pest and diseases, human illnesses, ethnic and sectariant crises, all of which resulted in high income volatility. The social mechanisms existing to mitigate the effects of all these in developing countries are usually undeveloped. Households that are currently non-poor today, but face a high probability of an adverse shock may on experiencing such shocks become poor tomorrow. The issue of who is likely to be poor than others are within the purview of the dynamic of poverty, which cannot be captured by mere static poverty measurement. The paper carried an empirical comparative poverty dynamics in West-Africa to determine the probability of the frequent movement of people in and out of poverty of and to also determine the appropriate policy measures to address it from dynamic perspective as opposed to the hitherto static approach. The data from a panel of some representative West Africa countries were analysed using pooled regression analysis. Three variables were used as proxy variables for poverty incidence. The result was quiet revealing. In all, the Gini-coefficient was found to significantly account for the transition of households in and out of poverty trap in the West African sub-region. It can be concluded therefore that inequality is the main factor responsible for people drifting into poverty and most times unable to get out because policies to address inequality is largely ineffective in the West African sub-region.