FINANCIAL INCLUSION, INCOME INEQUALITY AND ECONOMIC GROWTH IN SUB-SAHARA AFRICA (1995-2017)

Chima, Mathias and Covenant University, Theses (2020) FINANCIAL INCLUSION, INCOME INEQUALITY AND ECONOMIC GROWTH IN SUB-SAHARA AFRICA (1995-2017). Masters thesis, COVENANT UNIVERSITY.

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Abstract

Income disparity and exclusive economic growth are significant issues with regards to developmental policies that are facing sub-Saharan Africa in the post - 2015 agenda for developmental objective. Disparity of earnings is coherently a central instigator in the inequality is logically a fundamental driver in the marginalization of household and small businesses from the formal sector of the economy and financial inclusion with regards to accessibility is a strategy by which the relative impact of earning imbalance on growth in terms of the economy can be weakened. This study therefore examines how financial access can be utilized to moderate the impact of earning disparity on inclusive growth in terms of the economy. The emphasis is on 48 nations in the sub-Saharan Africa (SSA) over the periodicity of 1995–2017 and the empirical validation which is based on the Generalised Method of Moments (GMM) estimator. The following discoveries are proven from the GMM estimates. Income inequality has a positive insignificant influence on GDP per capita but has an adverse impression on GNI per capita.Secondly, financial inclusion variables improve the GDP per capita and GNI per capita significantly. Thirdly, private credit issued by deposit banks has a negative effect on Gini coefficient and Palma ratio however exhibits a positive influence on the Atkinson index; private credit issued by financial institutions has a mitigating effect on Gini coefficient however, exhibits a positive effect on Atkinson and Palma ratio; bank credit to deposit ratio have complimentary (positive) impression on the Gini coefficient though, has a reducing effect on Atkinson index and Palma ratio. Lastly, there is a positive net influence from the position of bank credit to deposit ratio and private credit issued by deposit banks in moderating the impact of Atkinson index on the growth of the economy; there is a positive net effect from the importance of private credit issued by financial institutions in mediating the impact of the Palma ratio on progression of economy. There is a complimentary net effect from the position of bank credit to deposit ratio in mediating the impression of Palma ratio on economic growth. However, there is an adverse net effect from the relevance of the private credit issued by deposit banks in modulating the effect of Gini coefficient on the growth of the economy and there is a negative net impact from the relevance of the private credit issued by deposit banks in modulating the impression of the Palma ratio on growth in terms of the economy. The study discusses and concludes in the wake of barriers to the objective of developmental sustainability in the sub-Sahara area. Amongst other: admittance to finance should be improved, intensively and extensively with the help of other complimentary policies such as ICT to boost its sufficiency in the moderation of income inequality for the improvement of an inclusive sub-Saharan economy.

Item Type:	Thesis (Masters)
Uncontrolled Keywords:	income inequality, inclusive growth, sub-Sahara Africa, financial inclusion
Subjects:	H Social Sciences > H Social Sciences (General)
Divisions:	UNSPECIFIED
Depositing User:	Mrs Hannah Akinwumi
Date Deposited:	23 May 2022 13:34
Last Modified:	23 May 2022 13:34
URI:	http://eprints.covenantuniversity.edu.ng/id/eprint/15869

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