Does Innovation Drive Up Income Inequality in Africa?

Emmanuel Bruno Nkoa Ongo (), Fabrice Ewolo Bitoto (), Blaise Beyene Ondoua () and Cérapis Nchinda Mbognou ()
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Emmanuel Bruno Nkoa Ongo: CEREG, ACEDA, University of Yaoundé
Fabrice Ewolo Bitoto: ACEDA, LAREFA, University of Dschang
Blaise Beyene Ondoua: ACEDA, LAREFA, University of Dschang
Cérapis Nchinda Mbognou: ACEDA, LAREFA, University of Dschang

Journal of the Knowledge Economy, 2024, vol. 15, issue 4, No 31, 16264-16290

Abstract: Abstract This study empirically analyzes, for the first time in Africa, the impact of innovation on income inequality over the period of 2000–2021. Three main results emerge: first, innovation is positively and significantly associated with income inequality at a threshold of 1%. Second, access to electricity, trade openness, CO2 emissions, and natural resource rents significantly reduce income inequality, while the opposite effect is observed for government consumption expenditure. Third, the results reveal a non-linear, inverted U-shaped relationship between innovation and income inequality. This suggests that there is a threshold above which innovation becomes a factor in reducing income inequality in Africa. In any case, it is incumbent upon African countries to consider innovation not only as a critical factor in the economic development of nations, but also as a potential vector for widening the income gap between individuals. A key recommendation would be to develop policies for the appropriation and absorption of innovation on the continent.

Keywords: Innovation; Income inequality; Africa (search for similar items in EconPapers)
JEL-codes: D31 O31 O4 O55 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s13132-023-01647-5

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