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What Affects Income in Sub-Saharan Africa?

Author

Listed:
  • Raymond Kofi Adjei

    (Mendel University in Brno, Czech Republic)

  • Veronika Kajurová

    (Mendel University in Brno, Czech Republic)

Abstract

This paper closely examines how selected macroeconomic variables affect income in Sub-Saharan Africa (SSA). The study employs a more recent dataset and uses fixed and random effects models to characterise the nature and direction of impact evidenced from the data. The analysis further incorporates a monetary policy element by introducing money market interest rate and examining its effects. In general, the paper reveals that income in SSA is significantly affected by trade. Additionally, money market interest rate is found to have no major impact on income as may be perceived, suggesting that this aspect of monetary policy has not played a major role in affecting income levels in SSA. The findings of this study can serve as a guide for policy makers within the region when considering policy actions in relation to income.

Suggested Citation

  • Raymond Kofi Adjei & Veronika Kajurová, 2021. "What Affects Income in Sub-Saharan Africa?," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 7(2), pages 223-237.
    • Handle: RePEc:men:journl:v:7:y:2021:i:2:p:223-237
    DOI: 10.11118/ejobsat.2021.011
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    More about this item

    Keywords

    income; international trade; sub-Saharan Africa; money market interest rate;
    All these keywords.

    JEL classification:

    • B27 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - International Trade and Finance
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F35 - International Economics - - International Finance - - - Foreign Aid

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