Empirical Analysis of the Main Drivers of Income Inequality in Southern Africa

John Anyanwu

Annals of Economics and Finance, 2016, vol. 17, issue 2, 337-364

Abstract: Using the dynamic system GMM estimation procedure, this paper empirically analyzes the principal drivers of market income inequality in Southern Africa, which has the highest income inequality in Africa. Our novel finding shows strong support for a dynamic, non-monotonic, inverted U-shaped, effect of inequality in the model. We find evidence of existence of the Kuznets curve in the sub-region. A non-monotonic, inverted Kuznets-type effect is found for political globalization. Our results show that access to secondary education and natural resources dependence strongly and significantly equalize income. We find that population growth and domestic investment rate appear to be income disequalizing.

Keywords: Economic growth; Main drivers; Income inequality; Income redistribution; Southern Africa (search for similar items in EconPapers)
JEL-codes: D31 D63 I32 O40 O55 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

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Persistent link: https://EconPapers.repec.org/RePEc:cuf:journl:y:2016:v:17:i:2:anyanwu

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