The Relationship Between Financial Development, Institutions Quality, and Income Inequality from the Sub-Saharan Africa Countries

Abdullah Almounsor () and Sami Mensi ()
Additional contact information
Abdullah Almounsor: Al-Baha University
Sami Mensi: Manouba University

Journal of the Knowledge Economy, 2024, vol. 15, issue 3, No 156, 14307-14338

Abstract: Abstract This study examines the hypothesis that financial development (FD) not only affects income inequality (II), but the effects can also be improved when there is a higher institutional quality (IQ). It uses the System GMM method on a panel of 48 Sub-Saharan African (SSA) countries during the 1980–2018 period. When banking sector development indicators and institutions are used separately as independent variables, the reported coefficients are negative and significant. The findings indicate that (FD) decreases (II). However, institutional variables seem to provoke (II) and to deepen the gap between the poor and the rich. Estimating the interaction variables, our findings conclude that poor IQ may contribute to the increasing inequality by shifting the gains of (FD) to the hands of the rich. Policy implications are discussed.

Keywords: Financial development; Income inequality; Institutions quality; Sub-Saharan Africa countries (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s13132-023-01510-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jknowl:v:15:y:2024:i:3:d:10.1007_s13132-023-01510-7

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/13132

DOI: 10.1007/s13132-023-01510-7

Access Statistics for this article

Journal of the Knowledge Economy is currently edited by Elias G. Carayannis

More articles in Journal of the Knowledge Economy from Springer, Portland International Center for Management of Engineering and Technology (PICMET)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().