Relative Prices of Non-Tradable Versus Tradable Goods and Poverty in Sub-Saharan Africa

Abstract

This paper assessed the effects of relative prices on poverty in Sub-Saharan Africa. The study covers a sample of 27 countries of Sub-Saharan Africa over the period 1992-2016.The formulation of a dynamic panel model and the estimation using the techniques of generalized moments (GMM) show that the relative prices of tradable goods by non-tradable goods have a negative and significant influence on poverty gap and on the proportion of the poor population in Sub-Saharan Africa. The results involve increasing and diversifying the local supply of manufactured goods and investing in technology to improve the technological balance of payments.

Keywords : Poverty, Sub-Saharan Africa, relative prices

Codes JEL : O11 ; F10 ; P46

DOI: 10.7176/JESD/16-8-07

Publication date: December 30^th 2025