scholarly journals Effect of Financial Inclusion on Income Inequality in Sub-Saharan Africa

2020 ◽  
pp. 1-15
Author(s):  
Kipoh Mpele Esther
Keyword(s):  
Income Inequality ◽  
Low Income ◽  
Low Cost ◽  
Panel Study ◽  
Generalized Method Of Moments ◽  
Financial Inclusion ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Negative Effect ◽  
Sub Saharan

Aims: To analyze financial inclusion as a channel to alleviate inequality in order to provide insight into the edifice of inequality reduction. Study Design:  Dynamic panel study. Place and Duration of Study: Sub-Saharan African countries over the period 2004-2018. Methodology: Using the generalized method of moments (GMM) on a sample of 27 Sub-Saharan African countries. Results: The results show that the estimated financial inclusion index has a negative effect on income inequality. Therefore, the depth of commercial bank branches and the effective use of bank accounts reduce income inequality. Conclusion: Increase financial inclusion as well as the development of financial infrastructure and the provision of specific low-cost services tailored to low-income households.

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

2020 ◽  
Vol 56 (2) ◽  
pp. 176-190
Author(s):  
Ibrahim Abidemi Odusanya ◽  
Anthony Enisan Akinlo
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Generalized Method Of Moments ◽  
Sub Saharan Africa ◽  
Growth Effect ◽  
Credit Market Imperfection ◽  
Negative Effect ◽  
Sub Saharan ◽  
Positive Effect ◽  
Ssa Countries

AbstractSub-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.

scholarly journals Investigating into the Employment and Income Inequality Nexus in Sub-Saharan Africa

2021 ◽  
Author(s):  
Suneila Gokhool ◽  
Verena Tandrayen Ragoobur ◽  
Harshana Kasseeah
Keyword(s):  
Income Inequality ◽  
Low Income ◽  
Good Governance ◽  
Ordinary Least Squares ◽  
Development Stage ◽  
Sub Saharan Africa ◽  
Domestic Investment ◽  
African Countries ◽  
Middle Income ◽  
Sub Saharan

Abstract This paper aims to examine the relationship between employment and income inequality in Sub-Saharan African countries. Even though the region has experienced a decade of positive economic growth, it has the second highest level of income inequality in the world. The drivers of income inequality are quantitatively investigated using data from 1991 to 2015 by the Fully Modified Ordinary Least Squares technique. The results show that employment, trade and domestic investment reduce income inequality in the region in the long term. Higher trade tends to improve income equality in middle-income countries. Alternatively, domestic investment and trade have more potential to reduce inequality in low-income economies. Controlling corruption is essential in the long run for job creation, irrespective of the development stage of the country. There is thus evidence to show that policies must be oriented to more opportunities of employment, domestic investment, trade and good governance in terms of low corruption.

scholarly journals ECONOMIC GROWTH AND INCOME INEQUALITY IN SUB-SAHARAN AFRICA

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.      

scholarly journals Income Inequality and Population Health in Sub-Saharan Africa: A Test of Income Inequality-Health Hypothesis

2021 ◽  
Vol 29 ◽  
pp. 235-254
Author(s):  
Ibrahim Abidemi Odusanya ◽  
◽  
Anthony Enisan Akinlo ◽  
Keyword(s):  
Mortality Rate ◽  
Income Inequality ◽  
Population Health ◽  
Generalized Method Of Moments ◽  
Infant Mortality Rate ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Life Expectancy At Birth ◽  
Sub Saharan ◽  
Poor Population

Existing studies have shown that income inequality remains a core determinant of population health. These findings are in line with the Income Inequality-Health Hypothesis (IIHH). However, this assertion remains unclear for Sub-Saharan Africa (SSA), despite the rising trend of income disparity in the region and the vastness of the studies that tested the validity of the IIHH. This inferential study, therefore, examines the effect of income inequality on health for 31 Sub-Saharan African countries from 1995 to 2015 using life expectancy at birth, infant mortality rate, and under-five mortality rate as indicators of population health, as well as the Gini index as a measurement of income inequality. The study employed the Generalized Method of Moments (GMM). We infer that income inequality contributes significantly to poor population health in Sub-Saharan Africa, thereby affirming the validity of the Income Inequality-Health Hypothesis for the region.

Monetary Policy in Sub-Saharan Africa

2018 ◽  
Keyword(s):  
Monetary Policy ◽  
Low Income ◽  
Sub Saharan Africa ◽  
Low Income Countries ◽  
African Countries ◽  
Policy Regimes ◽  
Export Prices ◽  
Policy Work ◽  
Sub Saharan ◽  
Policy Guidance

Having broadly stabilized inflation over the past two decades, many policymakers in sub-Saharan Africa are now asking more of their monetary policy frameworks. They are looking to avoid policy misalignments and respond appropriately to both domestic and external shocks, including swings in fiscal policy and spikes in food and export prices. In many cases they are finding current regimes—often characterized as ‘money targeting’—lacking, with opaque and sometimes inconsistent objectives, inadequate transmission of policy to the economy, and difficulties in responding to supply shocks. At the same time, little existing research on monetary policy is targeted to low-income countries. What do we know about the empirics of monetary transmission in low-income countries? (How) Does monetary policy work in countries characterized by a huge share of food in consumption, underdeveloped financial markets, and opaque policy regimes? (How) Can we use methods largely derived in advanced countries to answer these questions? And (how) can we use the results to guide policymakers? This book draws on years of research and practice at the IMF and in central banks from the region to shed empirical and theoretical light on these questions and to provide practical tools and policy guidance. A key feature of the book is the application of dynamic general equilibrium models, suitably adapted to reflect key features of low-income countries, for the analysis of monetary policy in sub-Saharan African countries.

scholarly journals Positioning for success: building capacity in academic competencies for early-career researchers in sub-Saharan Africa

2019 ◽  
Vol 6 ◽  
Author(s):  
C. Merritt ◽  
H. Jack ◽  
W. Mangezi ◽  
D. Chibanda ◽  
M. Abas
Keyword(s):  
Mental Health ◽  
Capacity Building ◽  
Low Cost ◽  
Early Career ◽  
Sub Saharan Africa ◽  
Training Experience ◽  
African Countries ◽  
Early Career Researchers ◽  
Academic Competencies ◽  
Sub Saharan

Background. Capacity building is essential in low- and middle-income countries (LMICs) to address the gap in skills to conduct and implement research. Capacity building must not only include scientific and technical knowledge, but also broader competencies, such as writing, disseminating research and achieving work–life balance. These skills are thought to promote long-term career success for researchers in high-income countries (HICs) but the availability of such training is limited in LMICs. Methods. This paper presents the contextualisation and implementation of the Academic Competencies Series (ACES). ACES is an early-career researcher development programme adapted from a UK university. Through consultation between HIC and LMIC partners, an innovative series of 10 workshops was designed covering themes of self-development, engagement and writing skills. ACES formed part of the African Mental Health Research Initiative (AMARI), a multi-national LMIC-led consortium to recruit, train, support and network early-career mental health researchers from four sub-Saharan African countries. Results. Of the 10 ACES modules, three were HIC-LMIC co-led, four led by HIC facilitators with LMIC training experience and three led by external consultants from HICs. Six workshops were delivered face to face and four by webinar. Course attendance was over 90% and the delivery cost was approximately US$4500 per researcher trained. Challenges of adaptation, attendance and technical issues are described for the first round of workshops. Conclusions. This paper indicates that a skills development series for early-career researchers can be contextualised and implemented in LMIC settings, and is feasible for co-delivery with local partners at relatively low cost.

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.

Information technology and insurance development in Sub-Saharan Africa

2021 ◽  
pp. 026666692110289
Author(s):  
Taiwo Akinlo
Keyword(s):  
Information Technology ◽  
Mobile Phone ◽  
Life Insurance ◽  
Sub Saharan Africa ◽  
Method Of Moment ◽  
African Countries ◽  
Insurance Premiums ◽  
Negative Effect ◽  
Sub Saharan ◽  
Insurance Development

The study examined the relationship between information technology and insurance development in 40 sub-Saharan African countries during the period 2000-2017. The study employed System Generalised Method of Moment for the estimations. Life insurance premiums, non-life insurance premiums and total insurance premiums are used to measure life insurance, non-life insurance and total insurance, respectively. The information technology is measured by mobile phone, fixed telephone and Internet penetrations. The study found that the Internet promotes non-life insurance while its effect on life and total insurance is insignificant. The mobile phone produced a negative effect on life insurance, non-life insurance and total insurance. However, fixed telephone significantly contributed to life insurance, non-life insurance and total insurance. Based on these findings, there is a need for insurers to encourage their client to use information technology tools for insurance activities and also increase their interaction with their customers.

Shadow economy in Africa: how relevant is financial inclusion?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Folorunsho M. Ajide
Keyword(s):  
Shadow Economy ◽  
Financial Inclusion ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Content Type ◽  
Development Indicators ◽  
Panel Data Estimation ◽  
Sub Saharan ◽  
Data Estimation ◽  
Toda And Yamamoto

Purpose This study aims to investigate the possible relationship between financial inclusion and shadow economy in selected African countries. Design/methodology/approach The study uses panel data estimation technique and Toda and Yamamoto causality approach. The data of selected African counties over a period of 2005–2015 are sourced from World Bank Development Indicators, International Monetary Fund International Financial statistics database and International Country Risk Guide. Findings The results show that financial inclusion reduces the size of shadow economy. The causality results show that there is a unidirectional causality moving from financial inclusion to shadow economy. The results demonstrate that a country with lower level of corruption and higher level of growth can benefit more in reducing the size of shadow economy through financial inclusion. Originality/value This study provides the first evidence of the link between financial inclusion and shadow economy from the Sub-Saharan Africa perspective. The study suggests that financial inclusion may be useful in affecting the size of shadow economy in Africa.

scholarly journals The acceptance of covid-19 vaccines in Sub-Saharan Africa: Evidence from 6 national phone surveys

2021 ◽  
Author(s):  
Shelton Kanyanda ◽  
Yannick Markhof ◽  
Philip Wollburg ◽  
Alberto Zezza
Keyword(s):  
Side Effects ◽  
Low Income ◽  
Urban Areas ◽  
Vaccine Coverage ◽  
Sub Saharan Africa ◽  
Low Income Countries ◽  
Vaccine Hesitancy ◽  
African Countries ◽  
Representative Sampling ◽  
Sub Saharan

Introduction Recent debates surrounding the lagging covid-19 vaccination campaigns in low-income countries center around vaccine supply and financing. Yet, relatively little is known about attitudes towards covid-19 vaccines in these countries and in Africa in particular. In this paper, we provide cross-country comparable estimates of the willingness to accept a covid-19 vaccine in six Sub-Saharan African countries. Methods We use data from six national high-frequency phone surveys from countries representing 38% of the Sub-Saharan African population (Burkina Faso, Ethiopia, Malawi, Mali, Nigeria, and Uganda). Samples are drawn from large, nationally representative sampling frames providing a rich set of demographic and socio-economic characteristics by which we disaggregate our analysis. Using a set of re-calibrated survey weights, our analysis adjusts for the selection biases common in remote surveys. Results Acceptance rates in the six Sub-Saharan African countries studied are generally high, with at least four in five people willing to be vaccinated in all but one country. Vaccine acceptance ranges from nearly universal in Ethiopia (97.9%, 97.2% to 98.6%) to below what would likely be required for herd immunity in Mali (64.5%, 61.3% to 67.8%). We find little evidence for systematic differences in vaccine hesitancy by sex or age but some clusters of hesitancy in urban areas, among the better educated, and in richer households. Safety concerns about the vaccine in general and its side effects emerge as the primary reservations toward a covid-19 vaccine across countries. Conclusions Our findings suggest that limited supply, not inadequate demand, likely presents the key bottleneck to reaching high covid-19 vaccine coverage in Sub-Saharan Africa. To turn intent into effective demand, targeted communication campaigns bolstering confidence in the safety of approved vaccines and reducing concerns about side effects will be crucial to safeguard the swift progression of vaccine rollout in one of the world's poorest regions.

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