dc.description.abstract | The geographical region of Sub-Saharan Africa, South East Asia and Latin America host some
of the poorest nations in the world. The problem with poverty emanates from its restriction to
access to quality healthcare, quality education and an overall decline in the quality of life
(Santiago, Wadsworth & Stump, 2011). Though data and trends of poverty suggest tremendous
results in lifting people out of poverty, another cancer exists – inequality. The study employed
a panel regression with data on 55 countries from Sub Saharan Africa, Latin America and
South East Asia. The study showed that Foreign Direct Investment in poor countries
exacerbates the problem of poverty and inequality. However, it is hampered by a sound
political climate as the political climate tend to foster equality. Other variables such as Gross
Capital Formation, Natural Resource Rent and the Growth in GDP per capita showed a
significant relationship with inequality. The study revealed a natural resource curse. The
recommendation of this study reechoes that of Gossel (2022) urging countries to move away
from FDI in the extractive industry | |