Investigating Influential Factors on Improving Poverty Conditions in Latin America

Abstract

The objective of this study is to determine the spillover effects of various international supports for poverty in Paraguay. A vector autoregressive model is used to investigate a dynamic linkage among five components: prevalence of undernourishment, food intake, gross domestic products (GDP) per capita, primary school completion rate, and unemployment rate. We found that the primary school completion rate has the largest spillover effects for reducing poverty except GDP per capita. Supporting international agencies such as the Inter-American Development Bank can keep or invest more money in early education sectors, and Paraguay can obtain not only direct supports but also larger indirect effects.