Financial development and income inequality in Africa
Abstract Across the globe, a rise in income inequality has been experienced for the last two decades, particularly in developing countries. This problem of income inequality poses a challenge to Africa’s ability to attain the United Nations (UN) Sustainment Development Goals (SDGs) of reduced inequa...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Springer Nature
2023-06-01
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| Series: | Humanities & Social Sciences Communications |
| Online Access: | https://doi.org/10.1057/s41599-023-01810-y |
| _version_ | 1797806839720574976 |
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| author | Victoria I. Okafor Isaiah O. Olurinola Ebenezer Bowale Romanus Osabohien |
| author_facet | Victoria I. Okafor Isaiah O. Olurinola Ebenezer Bowale Romanus Osabohien |
| author_sort | Victoria I. Okafor |
| collection | DOAJ |
| description | Abstract Across the globe, a rise in income inequality has been experienced for the last two decades, particularly in developing countries. This problem of income inequality poses a challenge to Africa’s ability to attain the United Nations (UN) Sustainment Development Goals (SDGs) of reduced inequalities (SDG-10). Against this backdrop, there is a need to harness the potential of financial development to reduce income inequality in Africa. Therefore, this study empirically examines how financial development affects income inequality in Africa. Financial development dimensions, access, depth, efficiency, and stability were considered to achieve the study’s objective. The study applied the system generalized method of moments (SGMM) to analyse data and the findings showed that each dimension of financial development had a varying impact on income inequality. Access, stability and efficiency components of financial development reduce income inequality, while the depth dimension of financial development exacerbates income inequality in Africa. Therefore, the study recommends that policymakers should not neglect other dimensions of finance in facilitating economic development. |
| first_indexed | 2024-03-13T06:13:27Z |
| format | Article |
| id | doaj.art-4ad130b86c37459a98ed8d7f016724b8 |
| institution | Directory Open Access Journal |
| issn | 2662-9992 |
| language | English |
| last_indexed | 2024-03-13T06:13:27Z |
| publishDate | 2023-06-01 |
| publisher | Springer Nature |
| record_format | Article |
| series | Humanities & Social Sciences Communications |
| spelling | doaj.art-4ad130b86c37459a98ed8d7f016724b82023-06-11T11:08:37ZengSpringer NatureHumanities & Social Sciences Communications2662-99922023-06-0110111010.1057/s41599-023-01810-yFinancial development and income inequality in AfricaVictoria I. Okafor0Isaiah O. Olurinola1Ebenezer Bowale2Romanus Osabohien3Department of Economics and Development Studies, Covenant UniversityCentre for Economic Policy and Development Research (CEPDeR), Covenant UniversityDepartment of Economics and Development Studies, Covenant UniversityDepartment of Economics and Development Studies, Covenant UniversityAbstract Across the globe, a rise in income inequality has been experienced for the last two decades, particularly in developing countries. This problem of income inequality poses a challenge to Africa’s ability to attain the United Nations (UN) Sustainment Development Goals (SDGs) of reduced inequalities (SDG-10). Against this backdrop, there is a need to harness the potential of financial development to reduce income inequality in Africa. Therefore, this study empirically examines how financial development affects income inequality in Africa. Financial development dimensions, access, depth, efficiency, and stability were considered to achieve the study’s objective. The study applied the system generalized method of moments (SGMM) to analyse data and the findings showed that each dimension of financial development had a varying impact on income inequality. Access, stability and efficiency components of financial development reduce income inequality, while the depth dimension of financial development exacerbates income inequality in Africa. Therefore, the study recommends that policymakers should not neglect other dimensions of finance in facilitating economic development.https://doi.org/10.1057/s41599-023-01810-y |
| spellingShingle | Victoria I. Okafor Isaiah O. Olurinola Ebenezer Bowale Romanus Osabohien Financial development and income inequality in Africa Humanities & Social Sciences Communications |
| title | Financial development and income inequality in Africa |
| title_full | Financial development and income inequality in Africa |
| title_fullStr | Financial development and income inequality in Africa |
| title_full_unstemmed | Financial development and income inequality in Africa |
| title_short | Financial development and income inequality in Africa |
| title_sort | financial development and income inequality in africa |
| url | https://doi.org/10.1057/s41599-023-01810-y |
| work_keys_str_mv | AT victoriaiokafor financialdevelopmentandincomeinequalityinafrica AT isaiahoolurinola financialdevelopmentandincomeinequalityinafrica AT ebenezerbowale financialdevelopmentandincomeinequalityinafrica AT romanusosabohien financialdevelopmentandincomeinequalityinafrica |