Public debt and inequality in Sub-Saharan Africa: the case of EMCCA and WAEMU countries

Mihai Mutascu (), Albert Lessoua () and Nicolae Bogdan Ianc ()
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Mihai Mutascu: West University of Timisoara
Albert Lessoua: OMNES Education - Paris
Nicolae Bogdan Ianc: West University of Timisoara

Economic Change and Restructuring, 2024, vol. 57, issue 5, No 8, 44 pages

Abstract: Abstract The paper investigates whether public debt explains income inequality in several Sub-Saharan African (SSA) countries. The core method employed is the Bayesian Model Averaging (BMA) estimator, which uses a dataset covering the period 1997–2019. The key findings reveal that public debt tends to reduce inequality among the poor but may harm the rich in the WAEMU region. Public debt generally has a neutral impact on inequality in EMCCA but can improve income distribution among the rich under stringent corruption control. In terms of contributions, the paper is one of the first works that examine how public debt impacts inequality in the Sub-Saharan African (SSA) countries across different levels of income. Moreover, it explores the intricate relationship among public debt, socio-economic characteristics, corruption, and inequality within the region.

Keywords: Public debt; Revenue inequality; Determinants; Sub-Saharan Africa (search for similar items in EconPapers)
JEL-codes: C23 D63 H63 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10644-024-09744-4

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