The Determinants of Poverty Across Countries: A Cross Sectional Analysis Using 2023 Data

This study examines the determinants of poverty across 47 countries in 2023, a year marked by post‑pandemic recovery and high global inflation. Six explanatory variables—inflation, GDP per capita growth, unemployment, income inequality (Gini index), female labour force participation, and secondary school enrolment—are tested together in a log‑linear ordinary least squares model with robust standard errors. The results show that three factors are most strongly associated with poverty: higher unemployment and greater income inequality are linked to significantly higher poverty, while higher secondary enrolment is linked to lower poverty. In contrast, inflation, GDP growth, and female labour force participation do not exhibit statistically significant independent effects in this sample. The findings suggest that, at least in a cross‑sectional snapshot for 2023, structural forces related to jobs, distribution, and human capital are more important in explaining cross‑country poverty differences than headline macroeconomic aggregates. The study concludes that deliberate policies aimed at expanding decent employment, reducing inequality, and investing in education are likely to be more effective for poverty reduction than relying on economic growth or price stability alone.