The Sub-Saharan region (SSR) has a rapid population growth, challenges of food security and political adjustments which have been making efforts to cope with global partner expectations. This study analyses the development and status of institutions which have been established in the SSA to affect the demands of globalization and poverty reduction for the countries of Sub-Saharan Africa over the period 2010-2018 using a panel data set. The GMM model used in this study estimated that trade liberalization has increased poverty in the SSR. The results analysis showed that the effect of increasing trade liberalization on poverty decreases with the quality of institutions. The coefficient linked to the interactive variable was found to be negative and significant at the 10% threshold, showing that when the quality of governance is good, the effect of increasing the openness rate on poverty decreases by 0.2146%. The estimation of the simultaneous equation model by SUR method also revealed that the quality of institutions, particularly the index of regulation of business activities, was positively affecting trade liberalization, which in turn led to poverty reduction.
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