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

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.

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Deconstructing the Impact of Entrepreneurship on Income Inequality in Sub-Saharan Africa Countries

Economics and Business ◽

10.2478/eb-2020-0018 ◽

2020 ◽

Vol 34 (1) ◽

pp. 273-284

Author(s):

Jimoh S. Ogede

Keyword(s):

Income Inequality ◽

Sub Saharan Africa ◽

African Countries ◽

Macroeconomic Factors ◽

Significance Level ◽

Long Run ◽

Short Run ◽

Sub Saharan ◽

Entrepreneurial Activities ◽

The Impact

Abstract The study examines the impacts of entrepreneurship on income inequality in a panel of 29 Sub-Saharan African countries spanning from 2004 to 2020. The paper employs a dynamic heterogeneous panel approach to differentiate between long-run and short-run impacts of entrepreneurship on income inequality. The findings establish a robust and direct nexus between entrepreneurial activities and income disparity. The results of the two entrepreneurial indicators are stable. Besides, the coefficient of the human capital is positive in the regression and statistically significant at a 5 percent significance level. The proxies for macroeconomic factors exhibit diverse signs and impact, which suggest a policy stimulus aimed at refining macroeconomic situations and also ignite prospects for households to increase their incomes.

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

International Journal of Scientific Research and Management ◽

10.18535/ijsrm/v8i04.em04 ◽

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.

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

American Journal of Economics ◽

10.47672/aje.884 ◽

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.

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Revisiting the Relationship between Poverty and Environmental Sustainability in Sub-Saharan African Countries using Dynamic Econometric Models

Economy ◽

10.20448/journal.502.2021.82.16.25 ◽

2021 ◽

Vol 8 (2) ◽

pp. 16-25

Author(s):

Owusu Samuel Mensah ◽

Chen Jianlin ◽

Fu Chuambo ◽

Hu Qio

Keyword(s):

Economic Growth ◽

Sustainable Development ◽

Environmental Sustainability ◽

Econometric Models ◽

Sub Saharan Africa ◽

African Countries ◽

Development Goals ◽

Sub Saharan ◽

The Impact

Sustainable development remains an important issue in the quest to achieve a safe and a better world. The expansion of the 8 millennium development goals into the 17 sustainable development goals is a testament of the conscious desire to improve the human environment to ensure better quality of life for its citizens. This study assembles a collection of four sophisticated econometric models to determine the impact of poverty and other variables on two indicators of environmental sustainability. Beside, economic development, the study confirmed the negative impact of poverty on both indicators of sustainable development. The results prove that poverty in sub-Saharan Africa is a threat to environmental quality and its consequential challenges. The call to promote environmentally responsible behaviours should not be focused on developed countries alone. Poverty is also associated with high levels of pollution and poor countries including countries in sub-Saharan Africa contributes must equally restrategise for effective environmental goals. The study further discloses that poverty is one of the strongest factors that affect environmental sustainability. This observation is not a contradiction to the well-established fact that prosperity or economic growth is a major precursor of unsustainable environment. On the contrary the evidence in this paper amplifies a consequence of a social crisis if they fester at both ends. In one breath, whereas economic growth or economic prosperity can compromise the quality of the environment. In conclusion, this result implies that African countries in their pursuit of economic growth, education and effective healthcare to ameliorate poverty must incorporate other aggressive strategies to hasten poverty reduction.

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The Impact of Democracy on Economic Growth in Sub-Saharan Africa, 1982–2012

The Oxford Handbook of Africa and Economics ◽

10.1093/oxfordhb/9780199687114.013.13 ◽

2014 ◽

pp. 658-674

Author(s):

Takaaki Masaki ◽

Nicolas van de Walle

Keyword(s):

Economic Growth ◽

Democratic Consolidation ◽

Sub Saharan Africa ◽

African Countries ◽

Economic Implications ◽

New Era ◽

Rapid Economic Growth ◽

Sub Saharan ◽

The Impact ◽

Regime Transitions

There is still an ongoing debate over the economic implications of democracy, and this has gained critical importance particularly in the African context, where a wave of democratization in the early 1990s coincided with the start of a new era of rapid economic growth. In this chapter, it is argued that the existing literature is inadequate in distinguishing the effects of regime transitions and democratic consolidation on economic growth. Through the analysis of the latest economic and political data, which include up to 43 countries in sub-Saharan Africa for the period of 1982–2012, strong evidence is found that democracy is positively associated with economic growth, and that this “democratic advantage” is more pronounced for those African countries that have remained democratic for longer periods of time. The findings call for more nuanced studies that carefully distinguish potentially divergent effects of regime transitions and democratic consolidation on economic growth.

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Human Capital Formation and Economic Growth in Sub-Saharan African Countries: An Empirical Investigation

The Indian Economic Journal ◽

10.1177/0019466220972848 ◽

2020 ◽

Vol 68 (2) ◽

pp. 249-268

Author(s):

Taiwo Akinlo ◽

Olusola Joel Oyeleke

Keyword(s):

Economic Growth ◽

Human Capital ◽

Economic Development ◽

Sub Saharan Africa ◽

African Countries ◽

Education And Health ◽

Level Of Economic Development ◽

Sub Saharan ◽

Generalised Method Of Moments ◽

The Impact

This study explored human capital–economic growth nexus and determine if the relationship is influenced by the level of economic development in 36 sub-Saharan African countries during the period from 1986–2018. The study used dynamic generalised method of moments (GMM) and static estimations to achieve the objective of the study. The study used alternative indicators of human capital to provide strong evidence and robust results. The study also considered the income groups within the region. The study found that human capital contributed to economic growth, as its indicators are positive and significant. The study also found that the connection that exists between human capital and economic growth also depends on the level of economic development. Generally, our 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.

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The Impact of social infrastructures on economic growth of Sub-Saharan Africa: implications for sustainable economic growth

African Population Studies ◽

10.11564/33-2-1418 ◽

2019 ◽

Vol 33 (2) ◽

Author(s):

Ezebuilo R Ukwueze ◽

Oliver E Ogbonna ◽

Ozoemena S Nwodo ◽

Chinasa E Urama ◽

Anthony C Ajah

Keyword(s):

Economic Growth ◽

Sub Saharan Africa ◽

Sub Saharan ◽

Sustainable Economic Growth ◽

The Impact

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Does regional currency integration ameliorate global macroeconomic shocks in sub-Saharan Africa? The case of the 2008-2009 global financial crisis

Journal of Economic Studies ◽

10.1108/jes-08-2011-0092 ◽

2014 ◽

Vol 41 (5) ◽

pp. 737-750 ◽

Cited By ~ 36

Author(s):

Gregory N. Price ◽

Juliet U. Elu

Keyword(s):

Economic Growth ◽

Financial Crisis ◽

Global Financial Crisis ◽

Sub Saharan Africa ◽

Parameter Estimates ◽

African Countries ◽

Macroeconomic Shocks ◽

Content Type ◽

Sub Saharan ◽

The Impact

Purpose – The purpose of this paper is to consider whether regional currency integration in sub-Saharan Africa ameliorates global macroeconomic shocks by considering the impact of the 2008-2009 global financial crisis on economic growth. This suggests that Central Africa Franc Zone (CFAZ) eurocurrency union membership amplifies the effects of global business cycles in sub-Saharan Africa. Design/methodology/approach – The authors estimate the parameters of a quantity theory model of economic growth within a Generalized Estimating Equation (GEE) Framework. Findings – Parameter estimates from GEE specifications reveal that the contraction in credit during the financial crisis of 2008-2009 had larger adverse growth effects on sub-Saharan African countries who were members of the CFAZ eurocurrency union. The authors also find that sub-Saharan African countries who were members of the CFAZ eurocurrency union were more likely to experience a contraction in credit. Originality/value – As far as the authors can discern, no existing empirical growth models use a GEE framework to estimate parameters of interest. The GEE parameter estimates are distribution-free, robust with respect to unknown forms of heteroskedasticity, and control for a wide variety of error structures that can induce bias in panel data parameter estimates.

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ECONOMIC GROWTH AND INCOME INEQUALITY IN SUB-SAHARAN AFRICA

Journal of Humanities, Social Science and Creative Arts ◽

10.51406/jhssca.v14i1.2053 ◽

2020 ◽

Vol 14 (1) ◽

pp. 113-129

Author(s):

S. O. AKINBODE ◽

T. M. BOLARINWA ◽

O. O. HASSAN

Keyword(s):

Economic Growth ◽

Income Inequality ◽

Granger Causality ◽

Sub Saharan Africa ◽

African Countries ◽

Causality Test ◽

Distributed Lag ◽

Long Run ◽

Negative Effect ◽

Sub Saharan

Economies of Sub-Saharan African (SSA) countries have been growing slowly in recent time. Economic growth is thought to affect inequality but not much is known about the nature of such relationship in SSA and there is no concordance among the few available. This paper examined the relationship between economic growth and inequality in the region using data from 1990 to 2017estimated with the Panel Autoregressive Distributed Lag (ARDL) Model and Granger Causality. Hausman’s test suggested the superiority of the Pooled Mean Group (PMG) over the Mean Group (MG) Model. The PMG results showed that economic growth had significant and negative effect on income inequality (proxy by GINI-coefficient) in the long run suggesting a state of the later part of the Kuznet curve. This is in addition to the negative effect in the short run which is contrary to the theory. Furthermore, the result of the Granger Causality test revealed evidence of unidirectional relationship running from economic growth to income inequality in the region. Therefore, the study recommended that governments of Sub-Saharan African countries should implement policies and programmes capable of sustaining and improving inclusive growth in order to avoid high income inequality in the region.

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“DELIVER AFRICA FROM DEBTS”: Good Governance Alone is not Enough to Save the Continent From Debt Onslaught

World Affairs ◽

10.1177/00438200211025519 ◽

2021 ◽

pp. 004382002110255

Author(s):

Abel Kinyondo ◽

Riccardo Pelizzo ◽

Mwoya Byaro

Keyword(s):

Economic Growth ◽

Economic Performance ◽

Good Governance ◽

Government Debt ◽

Sub Saharan Africa ◽

Growth Data ◽

African Countries ◽

Original Dataset ◽

Sub Saharan ◽

The Impact

The present article analyzes the debt–economic growth nexus in African countries while controlling for the impact of good governance indicators. In contrast to a long tradition of scholarship that has consistently suggested that government debt has a detrimental impact on economic growth in sub-Saharan Africa, recent studies have actually shown that government debt, when coupled with improvements in the quality of government, is actually a driver of economic growth. By analyzing an original dataset that covers the 2002–15 period and additional debt–economic growth data going up to the year 2020, we are able to suggest three conclusions. First, in the absence of debt, good governance matters in improving economic growth. Second, some dimensions of governance are better predictors of economic performance than others—as the “good enough governance” literature has in recent years suggested. Third, under no circumstances is debt government growth beneficial for the economic performance of African countries. Building on this evidence, we suggest that the COVID-19 pandemic—which has already slowed down African economies and increased their debt exposure—may prevent African countries from making greater progress along the developmental path.

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