How polarized is sub-Saharan Africa? A look at the regional distribution of consumption expenditure in the 2000s

2020 ◽  
Author(s):  
Fabio Clementi ◽  
Michele Fabiani ◽  
Vasco Molini
Keyword(s):  
Economic Growth ◽  
Regional Distribution ◽  
Southern Cone ◽  
Sub Saharan Africa ◽  
Household Surveys ◽  
Consumption Expenditure ◽  
African Countries ◽  
Sub Saharan ◽  
Main Criticism

Abstract The resurgence of economic growth over the last two decades in sub-Saharan Africa has recently come under scrutiny by scholars, the main criticism being the lack of inclusiveness. While studies on inequality in sub-Saharan Africa are becoming numerous, less attention has been devoted so far to the growing polarization the region is undergoing. Polarization, as distinct from inequality, refers to the tendency of shifting away from the centre of a distribution to its tails, creating a hollowed-out middle. This paper, using a set of sub-Saharan African national household surveys, provides a first estimate of the regional expenditures’ polarization. This latter steadily increased throughout the 2000s and its growth was mainly driven by increasing polarization between countries, meaning sub-Saharan Africa tended to polarize spatially, with the Southern cone countries and some Western African countries performing above the average, and the rest of the region lagging behind.

scholarly journals The Distribution of Consumption Expenditure in Sub-Saharan Africa: The Inequality Among All Africans

2019 ◽  
Vol 29 (1) ◽  
pp. 1-25
Author(s):  
La-Bhus Fah Jirasavetakul ◽  
Christoph Lakner
Keyword(s):  
Wide Distribution ◽  
Living Standards ◽  
Sub Saharan Africa ◽  
Household Surveys ◽  
Consumption Expenditure ◽  
African Countries ◽  
Full Sample ◽  
Alternative Measures ◽  
Sub Saharan ◽  
Measures Of Inequality

Abstract This paper uses a set of national household surveys to study the regional Sub-Saharan Africa distribution of consumption expenditure among individuals during 1993–2008. The analysis puts the disparities in living standards that exist among all persons in Africa into context with the disparities that exist within and between African countries. We find some evidence that African interpersonal inequality has increased, but this depends on the measure of inequality. The Africa-wide Gini increased from 53% in 1993 to 56% in 2008 in the full sample, compared with an increase from 54% to 56% in the balanced sample of countries. In the full sample, this result is robust to alternative measures of inequality, while in the balanced sample, some bottom-sensitive measures show a decline. Disparities in living standards between countries have increased, while there has been no systematic increase in within-country inequality. For the Africa-wide distribution, the growth of consumption expenditure (from household surveys) has been low (between 0.9% and 1.6% per year depending on the sample). This growth has been uneven such that the richest 5% of Africans received around 40% of the total gains.

Managing African Urbanization in the Context of Environmental Change

2014 ◽  
Vol 2 (2) ◽  
Author(s):  
Shuaib Lwasa
Keyword(s):  
Climate Change ◽  
Economic Growth ◽  
Social Services ◽  
Urban Areas ◽  
Urban Governance ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Sub Saharan ◽  
Urbanization Rate ◽  
Development And Management

Africa’s urbanization rate has increased steadily over the past three decades and is reported to be faster than in any other region in the world . It is estimated that by 2030, over half of the African population will be living in urban areas . But the nature of Africa’s urbanization and subsequent form of cities is yet to be critically analyzed in the context of city authorities’ readiness to address the challenges . Evidence is also suggesting that urbanization in African countries is increasingly associated with the high economic growth that has been observed in the last two decades . Both underlying and proximate drivers are responsible for the urbanization, and these include population dynamics, economic growth, legislative designation, increasing densities in rural centers, as well as the growth of mega cities such as Lagos, Cairo and Kinshasa, that are extending to form urban corridors . With the opportunities of urbanization in Sub–Saharan Africa, there are also challenges in the development and management of these cities . Those challenges include provision of social services, sustainable economic development, housing development, urban governance, spatial development guidance and environmental management, climate change adaptation, mitigation and disaster risk reduction . The challenge involves dealing with the development and infrastructure deficit, in addition to required adaption to and mitigation of climate change . This paper examines the current state of urban management in Africa .

scholarly journals Financial Inclusion, Income Inequality and Sustainable Economic Growth in Sub-Saharan African Countries

2021 ◽  
Vol 13 (4) ◽  
pp. 1780
Author(s):  
Chima M. Menyelim ◽  
Abiola A. Babajide ◽  
Alexander E. Omankhanlen ◽  
Benjamin I. Ehikioya
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Financial Services ◽  
Sub Saharan Africa ◽  
Kuznets Curve ◽  
African Countries ◽  
Financial Access ◽  
Sub Saharan ◽  
Sustainable Economic Growth ◽  
The Impact

This study evaluates the relevance of inclusive financial access in moderating the effect of income inequality on economic growth in 48 countries in Sub-Saharan Africa (SSA) for the period 1995 to 2017. The findings using the Generalised Method of Moments (sys-GMM) technique show that inclusive financial access contributes to reducing inequality in the short run, contrary to the Kuznets curve. The result reveals a negative effect of financial access on the relationship between income inequality and economic growth. There is a positive net effect of inclusive financial access in moderating the impact of income inequality on economic growth. Given the need to achieve the Sustainable Development Targets in the sub-region, policymakers and other stakeholders of the economy must design policies and programmes that would enhance access to financial services as an essential mechanism to reduce income disparity and enhance sustainable economic growth.

scholarly journals Foreign Direct Investment - Growth Linkage in Sub-Saharan Africa: Is Governance a Mediating Factor?

2019 ◽  
Vol 6 (2) ◽  
pp. 111-129
Author(s):  
Fisayo Fagbemi ◽  
Kehinde Mary Bello
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Political Stability ◽  
Business Environment ◽  
Mediating Effect ◽  
Sub Saharan Africa ◽  
Policy Framework ◽  
Investment Efficiency ◽  
African Countries ◽  
Sub Saharan

In sub – Saharan Africa, weak institutions and the rising concern for improved business environment offer considerable leverage for enhancing the effectiveness of institutional framework, capital inflows, and public investment efficiency. These have put SSA in the global spotlight in recent times. Hence, the study examines the mediating effect of governance on FDI – growth nexus in 35 SSA countries between 2002 and 2017 using panel data techniques (Pooled OLS, Fixed Effects, and Panel-Corrected Standard Error’ (PCSE) estimation) and the Dynamic One – Step Difference and System GMM. Results indicate that control of corruption, political stability and regulatory quality, including governance composite index, have a positive and significant effect on economic growth, suggesting that institutions have a salutary impact on SSA economies. The findings further show that FDI inflows adversely influence growth owing to insufficient absorptive capacity that could enhance FDI effectiveness in the region. More importantly, the pervasiveness of poor governance in SSA is identified as a critical case that undermines the development of the nexus between FDI and economic growth. Thus, the study suggests that FDI – growth linkage would be enhanced by promoting a strong institutional environment that offers a good mechanism for attaining the actual FDI spillover potential through a policy framework that points the path towards cost-effective measures in SSA. Also, there should be core investment policies across African countries that would induce the private sector in consolidating government efforts and resources aimed at improving international competitiveness by diversifying the region’s economies away from a protracted commodity – based.

scholarly journals HIV/AIDS and Economic Growth: Empirical Evidence from Sub-Saharan Africa

2015 ◽  
Vol 7 (4) ◽  
pp. 30 ◽  
Author(s):  
Danjuma Maijama'a ◽  
Shamzaeffa Samsudin ◽  
Shazida jan Mohd Khan
Keyword(s):  
Economic Growth ◽  
Time Lag ◽  
Hiv And Aids ◽  
Sub Saharan Africa ◽  
Growth Equation ◽  
Solow Model ◽  
African Countries ◽  
Negative Effect ◽  
Per Capita ◽  
Sub Saharan

<p>This study investigates the effects of the HIV and AIDS epidemic on economic growth in 42<br />sub-Saharan African countries using data spanning from 1990-2013. Unlike previous studies,<br />we use a longer data horizon and take the time lag effect of the epidemic’s incubation period<br />that is, after it might have developed to AIDS into consideration in our estimations. We<br />estimated an empirical growth equation within an augmented Solow model and applied the<br />dynamic system GMM estimator. The results suggest that current HIV prevalence rate –<br />associated with rising morbidity, has a negative effect on GDP per capita growth, conversely<br />AIDS – associated with higher mortality in addition to morbidity, increases per capita GDP<br />growth.</p>

Fostering Economic Development: Is External Finance Responsible for the Poor Economic Growth in Sub-Saharan Africa?

2016 ◽  
Vol 16 (2) ◽  
pp. 313-347 ◽  
Author(s):  
Ehizuelen Michael Mitchell Omoruyi ◽  
Huang Meibo
Keyword(s):  
Economic Growth ◽  
Transmission Mechanism ◽  
Sub Saharan Africa ◽  
Consumption Expenditure ◽  
Ceteris Paribus ◽  
External Finance ◽  
The Poor ◽  
Sub Saharan ◽  
Positive Effect ◽  
Robust Consensus

On the question of whether external finance stimulates GDP growth, the profession offers inconclusive as well as frequent contradictory outcomes. While waiting for a robust consensus, this paper addressed directly the mechanisms through which external finance should influence economic growth. Investment was identify as the most significant transmission mechanism, and as well considers effects via funding regime consumption expenditure and import. By employing the residual generated repressors’, we accomplish a measure of the overall influence of external finance on economic growth, accounting for the influence through investment. Based on the pooled panel outcomes, a sample of twenty-five Sub-Saharan Africa economies were examine over the period of 1970–1997; the result indicates that there is a significant and positive effect of overseas assistance on economic growth, ceteris paribus. Based on average, each 1 % point upsurge in the aid/GNP ratio contributes one-quarter of 1 % point to the growth rate. Therefore, the poor economic growth in Africa should not be attributed to external finance ineffectiveness.

scholarly journals Factors of Economic Growth in Sub-Saharan Africa: Current Trends

2018 ◽  
Vol 11 (5) ◽  
pp. 38-54 ◽  
Author(s):  
G. V. Podbiralina ◽  
J. C. Asiagba
Keyword(s):  
Economic Growth ◽  
New Technologies ◽  
Negative Impact ◽  
Sub Saharan Africa ◽  
Added Value ◽  
African Countries ◽  
The World ◽  
Innovative Products ◽  
The Status ◽  
Sub Saharan

Despite the fact that the African continent is positioned as one of the fastest growing economies in the world (especially the sub-region of sub-Saharan Africa), the lack of industrialization and the use of modern technologies continues to be a brake on the development of the economies of African countries, which largely depend on agriculture and exports of raw goods that have a relatively low added value and account for more than 80% of their exports. This has a negative impact not only on the economic development of the region, but also on per capita incomes of the population. This article assesses the existing economic potential of African countries, which is one of the most important factors for overcoming economic backwardness, achieving the goals of sustainable development, raising the standard of living of the population and changing the status of SSA countries in the world economic system. It is shown that it is important for African states to attract new technologies and innovative products to the industrial and agricultural sectors, since knowledge and innovations are the locomotive of economic growth and are one of the most important factors in the reconstruction and modernization of their economies.

scholarly journals Institutions and Economic Growth in Sub-Saharan African Countries: The Effect of Investment Climate Quality

2020 ◽  
Vol 8 (04) ◽  
pp. 1706-1730
Author(s):  
Nyemb Pagbe Rémi Degourmond
Keyword(s):  
Economic Growth ◽  
Private Property ◽  
Composite Index ◽  
Principal Component ◽  
Sub Saharan Africa ◽  
Investment Climate ◽  
African Countries ◽  
Composite Indices ◽  
Sub Saharan ◽  
The Impact

This paper assesses the impact of investment climate quality on economic growth for a sample of 21 countries in Sub-Saharan Africa (SSA), over the period 1996-2014. The investment climate is measured simultaneously by individual components and composite indices, in order to capture both its global and specific effects, with a view to possibly identifying the most determining factors in the economic growth of SSA countries. In addition, in order to verify the robustness of our results, two composite indices of investment climate were constructed using the Principal Component Analysis method, with variables from two main databases (the World Governance Indicators database of World Bank and the International Country Risk Guide database).By using fixed and random effects models based on Hausman test results, we generally find that investment climate is a major determinant of economic growth in the countries of the SSA of the study sample. This result is valid regardless of the composite index or the individual component considered. Fight against corruption, protection of private property rights, efficiency of government, the quality of bureaucracy and regulation appear to be the most decisive components in accelerating economic growth for the sample of country considered.

scholarly journals Effect of economic growth on employment in Sub-Saharan Africa.

2021 ◽  
Vol 16 ◽  
pp. 28-41
Author(s):  
Francis Kamau Ndung’u ◽  
Professor Niu Xiongying
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Secondary Data ◽  
Sub Saharan Africa ◽  
Economic Sectors ◽  
African Countries ◽  
Total Employment ◽  
Development Indicators ◽  
Domestic Capital ◽  
Sub Saharan

The study aimed at investigating the effect of economic growth on employment in Sub-Saharan African. The study employed secondary data that was sourced from the World Bank, World development indicators and FAOSTAT covering 30 Sub Saharan African Countries for the period 1990 to 2015. The study employed the traditional neo-classical aggregate production function in its estimation of the regression results. The panel data obtained was analysed using the STATA software program. Hausman test was used and it determined that fixed effects estimation was preferred to random effects estimation and therefore fixed effects regression was used during the analysis. Empirical results on effect of economic growth on employment established that total employment, women in employment and men in employment statistically and significantly influenced economic growth and on the other hand economic sectors which comprised of domestic capital, imports, exports and services sectors statistically and significantly influenced economic growth.

scholarly journals THE EFFECT OF HUMAN CAPITAL ON ECONOMIC GROWTH IN SOME SUB SAHARA AFRICAN COUNTRIES (SSA)

2021 ◽  
Vol 5 (1) ◽  
pp. 1-24
Author(s):  
AISHA AHMAD SAJOH
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Data Base ◽  
Generalized Method Of Moments ◽  
Sub Saharan Africa ◽  
Unique Contribution ◽  
African Countries ◽  
Sub Saharan ◽  
Table Data ◽  
The Impact

Purpose: This research looked into debate on the possible impact of human capital on economic growth in Sub-Saharan Africa (SSA) and considers two alternative measures of human capital: health and education. Methodology: The research used a dynamic model based on the system generalized method of moments (SGMM) and analysed a balanced panel data covering 35 countries from 1986–2018. The research used Microsoft excel to record all the data gotten from the world indicator data base from world bank, penn world table data base and CANA database. The analysis was presented in a tabular form. Findings: This study found that human capital has an overall positive and statistically significant impact on economic growth in the SSA region, although, democracy has a negative and statistically significant impact on economic growth in the region. This finding shows the importance of both measures of human capital and aligns with the argument in the literature that neither education nor health is a perfect substitute for the other as a measure of human capital. Unique contribution to theory, practice and policy:Generally, the finding emphasised that both education and health measures of human capital are important, and that policymakers must consider the level of economic development while formulating policies that can enhance the impact of human capital on economic growth in the Sub-Saharan Africa region.

Sign in / Sign up

Export Citation Format

Share Document