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Globalization, Financial Depth, and Inequality in Sub-Saharan Africa

Author

Listed:
  • Hisako KAI

    (Graduate School of International Cooperation Studies Kobe University)

  • Shigeyuki HAMORI

    (Faculty of Economics Kobe University)

Abstract

This paper examines the relationship between globalization, financial deepening, and inequality in sub-Saharan Africa between 1980 and 2002. We provide the first detailed econometric analysis in this regard covering the entire sub-Saharan African region; such an analysis has hardly been conducted owing to the lack of relevant data. We find that while globalization deteriorates inequality, its disequalizing effect depends on the level of development of the country. Further, this paper confirms that globalization deteriorates the equalizing effect of financial depth, although the latter helps to reduce inequality. We conclude that in sub-Saharan Africa, as a result of globalization, the rich have become richer and the poor have become poorer.

Suggested Citation

  • Hisako KAI & Shigeyuki HAMORI, 2009. "Globalization, Financial Depth, and Inequality in Sub-Saharan Africa," Discussion Papers 0912, Graduate School of Economics, Kobe University.
    • Handle: RePEc:koe:wpaper:0912
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    More about this item

    Keywords

    Globalization; Financial Depth; Inequality; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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