Financial development and income inequality: evidence from African countries

Enowbi Batuo, M., Guidi, F. and Kupukile, M. 2011. Financial development and income inequality: evidence from African countries. African Development Bank Conference.

TitleFinancial development and income inequality: evidence from African countries
AuthorsEnowbi Batuo, M., Guidi, F. and Kupukile, M.
Abstract

This paper present empirical evidence on how financial development is related to income distribution in a panel data set covering 22 African countries for the period between 1990 to 2004. A dynamic panel estimation technique (GMM) is employ and the findings indicate that income inequality decrease as economies develop their financial sector, which is consistent with the bulk of theoretical and empirical research. The result also confirm that educational attainment play a significant role in making income distribution more equal. We also find no evidence supporting the Greenwood-Jovanovic hypothesis of an inverted-U- shaped

relationship between financial sector development and inequality.

JournalAfrican Development Bank Conference
Year2011
PublisherAfrican Development Bank
Web address (URL)http://www.afdb.org/fileadmin/uploads/afdb/Documents/Knowledge/Session%20II.2.3_1.%20Financial%20Development%20and%20Income%20Inequality.pdf
Publication dates
Completed2011

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