Effect of Trade on Income Inequality in sub-Saharan Africa: A note

Kolawole Ogundari ()

MPRA Paper from University Library of Munich, Germany

Abstract: The paper examines the effect of trade on income inequality in sub-Saharan Africa (SSA) countries. We employ a balanced panel of 11 countries covering 1980-2008 and use a fractional regression model for panel data as a method of estimation. The empirical results show that trade decreases income inequality, which might be an indication that our findings support the Stolper-Samuelson (SS) theorem in the Heckscher-Ohlin (HO) model in SSA. We also found evidence that lack of democracy (i.e., the existence of autocracy) increases income inequality, while higher educational attainment decreases income inequality in the study

Keywords: fractional regression; income inequality; education; political right; trade; SSA (search for similar items in EconPapers)
JEL-codes: E1 E6 F1 F18 (search for similar items in EconPapers)
Date: 2021-10-14
New Economics Papers: this item is included in nep-dev, nep-int and nep-mac
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:110200

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