Poverty is a key challenge to socioeconomic development globally. However, the degree to which distance from a market contributes to poverty remains unclear. To provide insights into this relationship, we quantified the relationships between distance from markets and the per capita income of rural and urban people in China based on data from 29 provinces and 2651 counties. Our results illustrate the existence of a “geographical curse”; that is, a large separation between producers and consumers can exacerbate poverty for less-affluent rural residents, who pay a larger proportion of their income to send their products to market and to purchase goods from those markets. Programs to alleviate poverty should therefore consider seeking solutions associated with reducing the impact of that distance, such as subsidizing the transport of goods, improving the transportation infrastructure, supporting innovative business practices, and balancing the locations of producers and their markets.
The objective of the research is twofold. The study examines the role of public finance in promoting sustainable development in SSA. Secondly, the study investigates the optimal level of public finance beyond which public finance crowds out investment and hinders sustainable development in SSA. The study adopts a battery of econometric techniques such as the traditional ordinary least square (OLS) estimation technique, Driscoll-Kraay covariance matrix estimator, and the dynamic panel threshold model. The study found that an increase in public debts lead to a decline in sustainable development. In contrast, the results show that increase in spending on health and education, and tax can engender sustainable development in SSA. Further, we uncover the optimal levels of public spending on health and education, and public debts that engenders sustainable development in SSA. One main implication of the findings is that governments across SSA needs to reduce public debts levels and increase public spending on health and education to within the threshold levels established in this study to aid sustainable development in SSA.
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