Financial deepening, Stock market, Inequality and Poverty: Some African Evidence

Jelson Serafim

No 2021/0177, Working Papers REM from ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa

Abstract: This study provides evidence for the relationship between private credit, stock market indicators, income inequality, and poverty. Using the annual data that ranges from 1992 to 2018 on 9 African economies. We had applied the estimation method of the Autoregressive Distributed Lag Model (ARDL) to model the long-run effect. Besides, we use Dumitrescu and Hurlin Panel causality to test for checking the direction of causality. The results of long-run estimates indicate that the stock market indicators have a significant positive impact on income inequalities, but have a negative and significant impact on poverty. Further, our findings show that private credit adversely reduces income inequalities. Our results also establish significant short-run causalities among stock market indicators, private credit, income inequalities, and Poverty.

Keywords: Private Credit; Stock market; income inequality; poverty. (search for similar items in EconPapers)
JEL-codes: G10 G20 I30 (search for similar items in EconPapers)
Date: 2021-05
New Economics Papers: this item is included in nep-afr, nep-ban, nep-cwa and nep-fdg
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Persistent link: https://EconPapers.repec.org/RePEc:ise:remwps:wp01772021

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