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<p>Sub-Saharan Africa (SSA) ranks as the second most unequal region globally (in terms of income distribution), harboring 10 of the 19 most unequal countries in the world. This paper explores the channels through which income inequality exerts its effects on economic growth in SSA. The study spans the period 1995–2015, focusing on 31 SSA countries. Findings from the two-step system generalized method of moments suggest that income inequality exerts a significant positive effect on economic growth via the saving transmission channel, while it has a statistically significant negative effect on economic growth in the region through the channels of fertility, credit market imperfection, and fiscal policy.</p>
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Sub-Saharan Africa (SSA) ranks as the second most unequal region globally (in terms of income distribution), harboring 10 of the 19 most unequal countries in the world. This paper explores the channels through which income inequality exerts its effects on economic growth in SSA. The study spans the period 1995–2015, focusing on 31 SSA countries. Findings from the two-step system generalized method of moments suggest that income inequality exerts a significant positive effect on economic growth via the saving transmission channel, while it has a statistically significant negative effect on economic growth in the region through the channels of fertility, credit market imperfection, and fiscal policy.

Growth effect of income inequality in sub-Saharan Africa: exploring the transmission channels

International Journal of Management and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Sub-Saharan Africa (SSA) ranks as the second most unequal region globally (in terms of income distribution), harboring 10 of the 19 most unequal countries in...

Growth effect of income inequality in sub-Saharan Africa: exploring the transmission channels

Article Category: Empirical Paper

Publié en ligne: 26 mai 2020

Pages: 176 - 190

Reçu: 28 mai 2019

Accepté: 08 mars 2020

DOI: https://doi.org/10.2478/ijme-2020-0012

Mots clés
income inequality, growth, transmission, channels, Africa

© 2020 Ibrahim Abidemi Odusanya et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Growth effect of income inequality in sub-Saharan Africa: exploring the transmission channels

Article Category: Empirical Paper

Publié en ligne: 26 mai 2020

Pages: 176 - 190

Reçu: 28 mai 2019

Accepté: 08 mars 2020

DOI: https://doi.org/10.2478/ijme-2020-0012

Mots clésincome inequality, growth, transmission, channels, Africa

© 2020 Ibrahim Abidemi Odusanya et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Mots clés
income inequality, growth, transmission, channels, Africa