Digital Divide, Globalization and Income Inequality in sub-Saharan African countries: Analysing cross-country heterogeneity

Hermann Ndoya and Simplice Asongu

No 22/064, Working Papers from European Xtramile Centre of African Studies (EXCAS)

Abstract: The aim of this paper is to analyse the impact of digital divide on income inequality in sub-Saharan Africa over the period 2004-2016. In applying a finite mixture model (FMM) to a sample of 35 sub-Saharan African (SSA) countries, this study posits that digital divide affects income inequality differently. Our findings show that the effect of digital divide on income inequality varies across two distinct groups of countries, which differ according to their level of globalization. In addition, the study shows that, most globalized countries are more inclined to be in the group where the effect of digital divide on income inequality is negative. The results are consistent to several robustness checks, including alternative measures of income inequality and additional control variables. The study complements that extant literature by assessing linkages between the digital divide, globalization and income inequality in sub-Saharan African countries contingent on cross-country heterogeneity.

Keywords: Digital Divide; Income Inequality; Globalization; Finite Mixture model (search for similar items in EconPapers)
JEL-codes: C14 O15 O33 O55 (search for similar items in EconPapers)
Pages: 32
Date: 2022-01
New Economics Papers: this item is included in nep-int and nep-pay
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Citations: View citations in EconPapers (5)

Forthcoming: Social Responsibility Journal

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http://publications.excas.org/RePEc/exs/exs-wpaper ... frican-countries.pdf Revised version, 2022 (application/pdf)

Related works:
Journal Article: Digital divide, globalization and income inequality in sub-Saharan African countries: analysing cross-country heterogeneity (2022)
Working Paper: Digital Divide, Globalization and Income Inequality in sub-Saharan African countries: Analysing cross-country heterogeneity (2022)
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