The impact of inflation on inequality in the CEMAC and UEMOA zones of Sub‐Saharan Africa

Mihai Mutascu, Albert Lessoua and Nicolae Bogdan Ianc

International Journal of Finance & Economics, 2025, vol. 30, issue 2, 1893-1914

Abstract: This paper explores the impact of inflation on income inequality in Sub‐Saharan Africa, over the period from 1997 to 2019. The Bayesian model averaging method, à la De Luca and Magnus (2011), is employed to empirically support the main conclusions. The main finding highlights that inflation has an asymmetrical impact on inequality in the Sub‐Saharan African (SSA) region, diminishing income disparities among the wealthy while exacerbating them among the impoverished. The results are sensitive to the economic characteristics of the country as well as the level of income brackets. Education, health expenditures, size of agriculture, economic development and control of corruption play pivotal roles in modelling the relationship between inflation and income inequality in the SSA region. Social safety net programs, monetary policies aimed at addressing inflation, investments in education, fostering inclusive economic growth, enhancing access to financial services for the impoverished, reforms to advance land rights and promoting regional cooperation should be the primary policy objectives for SSA countries.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/ijfe.2993

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:wly:ijfiec:v:30:y:2025:i:2:p:1893-1914

Ordering information: This journal article can be ordered from
http://jws-edcv.wile ... PRINT_ISSN=1076-9307

Access Statistics for this article

International Journal of Finance & Economics is currently edited by Mark P. Taylor, Keith Cuthbertson and Michael P. Dooley

More articles in International Journal of Finance & Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().