Revisiting The Finance-Inequality Nexus in a Panel of African Countries

Christelle Meniago () and Simplice Asongu
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Christelle Meniago: School of Economics, Sol Plaatje University

No 4001, Working Papers 2 from Office Of The Chief Economist, Development Bank of Nigeria

Abstract: The study assesses the role of financial development on income inequality in a panel of 48 African countries for the period 1996 to 2014. Financial development is defined in terms of depth (money supply and liquid liabilities), efficiency (from banking and financial system perspectives), activity (at banking and financial system levels) and stability while, three indicators of inequality are used, namely, the: Gini coefficient, Atkinson index and Palma ratio. The empirical evidence is based on Generalised Method of Moments. When financial sector development indicators are used exclusively as strictly exogenous variables in the identification process, it is broadly established that with the exception of financial stability, access to credit (or financial activity) and intermediation efficiency have favourable income redistributive effects. The findings are robust to the: control for unobserved heterogeneity in terms of time effects and inclusion of time invariant variables as strictly exogenous variables in the identification process.

Keywords: Economic Growth; Debt; innovation assimilation; companies; Economic Growth; MobileMoney; SME (search for similar items in EconPapers)
JEL-codes: R10 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2018-06
New Economics Papers: this item is included in nep-fdg
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Citations: View citations in EconPapers (243)

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Related works:
Journal Article: Revisiting the finance-inequality nexus in a panel of African countries (2018)
Working Paper: Revisiting the Finance-Inequality Nexus in a Panel of African Countries (2018)
Working Paper: Revisiting the Finance-Inequality Nexus in a Panel of African Countries (2018)
Working Paper: Revisiting the Finance-Inequality Nexus in a Panel of African Countries (2018)
Working Paper: Revisiting The Finance-Inequality Nexus in a Panel of African Countries (2018)
Working Paper: Revisiting the Finance-Inequality Nexus in a Panel of African Countries (2018)
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