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Inequalities in Africa : Does financial integration matter?

Author

Listed:
  • Ongo Nkoa Bruno Emmanuel

    (Centre for Studies and Research in Management and Economics (CSRME), University of Dschang)

  • Song Jacques Simon

    (Centre for Studies and Research in Management and Economics (CSRME), University of Dschang)

  • Balla Mekongo Célestin Ghislain

    (Centre for Studies and Research in Management and Economics (CSRME), University of Dschang)

Abstract

This paper assesses the impact of financial integration on inequality in Africa. Two dimensions of financial integration (regional and international) and three dimensions of inequality (economic, environmental, housing) are considered. Using a sample of 26 countries, we estimate a panel data model using the System Generalized Method of Moments (S-GMM) over the period 1985-2016. Our results show that regardless of the dimension considered, financial integration increases economic, environmental and housing inequalities. The results also show that there is a threshold at which financial integration reduces inequality. Financial integration combined with high financial inclusion is necessary for the mitigation of inequality.

Suggested Citation

  • Ongo Nkoa Bruno Emmanuel & Song Jacques Simon & Balla Mekongo Célestin Ghislain, 2021. "Inequalities in Africa : Does financial integration matter?," Economics Bulletin, AccessEcon, vol. 41(3), pages 1983-1993.
    • Handle: RePEc:ebl:ecbull:eb-21-00420
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    References listed on IDEAS

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    More about this item

    Keywords

    Africa; Inequalities; Financial integration; OLS; S-GMM;
    All these keywords.

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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