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Potential Impact of Climate Change and Armed Conflict on Inequality in Sub‐Saharan Africa

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  • Angela Ujunwa
  • Chinwe Okoyeuzu
  • Nelson Nkwor
  • Augustine Ujunwa

Abstract

This study investigates the potential impact of climate change and armed conflict on inequality in Sub‐Saharan Africa (SSA). The system‐GMM for a panel of 35 SSA countries is employed using annual data from 1997 to 2018. The empirical results indicate that armed conflict and climate are major drivers of inequality in SSA. The direct impact of the two determinants is more than the indirect impact. Also, the impact of armed conflict is more than the climate change. The coefficients of population growth, output growth, unemployment, natural rent, exchange rate and inflation rate are significant positive predictors of inequality in the SSA. The study advocates for a multidisciplinary inclusive growth strategy that prioritises the climate change reversal, de‐escalation of armed conflict, population control, reduction of the unemployment rate and increasing informal sector productivity, to promote inclusive growth and reduce inequality. However, sequencing the policy targets relative to the magnitude of their impact on inequality is extremely crucial.

Suggested Citation

  • Angela Ujunwa & Chinwe Okoyeuzu & Nelson Nkwor & Augustine Ujunwa, 2021. "Potential Impact of Climate Change and Armed Conflict on Inequality in Sub‐Saharan Africa," South African Journal of Economics, Economic Society of South Africa, vol. 89(4), pages 480-498, December.
    • Handle: RePEc:bla:sajeco:v:89:y:2021:i:4:p:480-498
    DOI: 10.1111/saje.12271
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    3. Ofori, Isaac K. & Dossou, Marcel A.M. & Asongu, Simplice A. & Armah, Mark K., 2023. "Bridging Africa’s income inequality gap: How relevant is China’s outward FDI to Africa?," Economic Systems, Elsevier, vol. 47(1).
    4. Toyo A. M. Dossou & Dossou K. Pascal & Emmanuelle N. Kambaye & Simplice A. Asongu & Alastaire S. Alinsato, 2024. "The Financial development-renewable energy consumption nexus in Africa: Does governance quality matter?," Working Papers 24/020, European Xtramile Centre of African Studies (EXCAS).
    5. Toyo Amègnonna Marcel Dossou, 2023. "Income Inequality in Africa: Exploring the Interaction Between Urbanization and Governance Quality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 167(1), pages 421-450, June.

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