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The Role of Institutions in the Finance-Inequality Nexus in Sub-Saharan Africa

Adeleye, Bosede Ngozi and Osabuohien, E. S. C. and Bowale, Ebenezer I.K (2017) The Role of Institutions in the Finance-Inequality Nexus in Sub-Saharan Africa. Journal of Contextual Economics, 137. pp. 173-192.

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This study contributes to the literature on income inequality by providing evidence that financial development not only impacts income distribution, but the effects can improve when there is a strong institutional framework. Using the system-generalised method of moments (sys-GMM) technique on a sample of 42 Sub-Saharan African (SSA) countries from 1996 to 2015, our major findings are summarised as follows: (1) inequality is persistent in the region (2) financial development does not significantly reduce income inequality; and (3) the control of corruption and its interaction with domestic credit exhibit an inverted-U relation with income inequality. Thus, policies that will reduce income inequality require that corruption be controlled given increase in domestic credit.

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HB Economic Theory
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mrs Hannah Akinwumi
Date Deposited: 13 May 2021 14:53
Last Modified: 13 May 2021 14:53

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