IDEAS home Printed from https://ideas.repec.org/a/mgt/youmgt/v19y2021i1p49-72.html
   My bibliography  Save this article

Income Inequality and Socio-Political Instability in Sub-Saharan Africa

Author

Listed:
  • Jean Michel Roy Oualy

    (University of Macerata, Italy)

Abstract

In this paper, we analyse the impact of income inequality on Socio-Political Instability (hereinafter SPI) in Sub-Saharan Africa from 1990 to 2018 with a sample of 47 countries. We first present the theoretical and empirical debate on income inequality and SPI. This literature review allows us tomeasure SPI using the principal component analysis method and hierarchical clustering and partitioning to analyse the similarities and differences between countries from a multidimensional perspective. We then estimate the SPI concerning income inequality and democracy. The findings are that assassinations are not linked to a regime’s duration, and the duration of a regime reduces if coups d’état (successful or not) are rampant. Between democracy and income inequality, the former has 34 times more impact on SPI. GDP growth increases SPI and education reduces SPI.

Suggested Citation

  • Jean Michel Roy Oualy, 2021. "Income Inequality and Socio-Political Instability in Sub-Saharan Africa," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 19(1 (Spring), pages 49-72.
    • Handle: RePEc:mgt:youmgt:v:19:y:2021:i:1:p:49-72
    DOI: 10.26493/1854-6935.19.49-72
    as

    Download full text from publisher

    File URL: https://www.hippocampus.si/ISSN/1854-6935/19.49-72.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.26493/1854-6935.19.49-72?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Augustin Kwasi Fosu, 2002. "Political Instability and Economic Growth: Implications of Coup Events in Sub‐Saharan Africa," American Journal of Economics and Sociology, Wiley Blackwell, vol. 61(1), pages 329-348, January.
    2. Onyinye I. Anthony-Orji & Anthony Orji & Jonathan E. Ogbuabor & Emmanuel O. Nwosu, 2019. "Do financial stability and institutional quality have impact on financial inclusion in developing economies? A new evidence from Nigeria," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 11(1), pages 18-40.
    3. Francisco H. G. Ferreira & Shaohua Chen & Andrew Dabalen & Yuri Dikhanov & Nada Hamadeh & Dean Jolliffe & Ambar Narayan & Espen Beer Prydz & Ana Revenga & Prem Sangraula & Umar Serajuddin & Nobuo Yosh, 2016. "A global count of the extreme poor in 2012: data issues, methodology and initial results," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(2), pages 141-172, June.
    4. Dixit, Avinash & Londregan, John, 1998. "Fiscal federalism and redistributive politics," Journal of Public Economics, Elsevier, vol. 68(2), pages 153-180, May.
    5. Konstantinos Angelopoulos & George Economides, 2008. "Fiscal policy, rent seeking, and growth under electoral uncertainty: theory and evidence from the OECD," Canadian Journal of Economics, Canadian Economics Association, vol. 41(4), pages 1375-1405, November.
    6. Venieris, Yiannis P & Gupta, Dipak K, 1986. "Income Distribution and Sociopolitical Instability as Determinants of Savings: A Cross-sectional Model," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 873-883, August.
    7. Era Dabla-Norris & Kalpana Kochhar & Nujin Suphaphiphat & Franto Ricka & Evridiki Tsounta, 2015. "Causes and Consequences of Income Inequality; A Global Perspective," IMF Staff Discussion Notes 15/13, International Monetary Fund.
    8. Ms. Era Dabla-Norris & Ms. Kalpana Kochhar & Mrs. Nujin Suphaphiphat & Mr. Franto Ricka & Ms. Evridiki Tsounta, 2015. "Causes and Consequences of Income Inequality: A Global Perspective," IMF Staff Discussion Notes 2015/013, International Monetary Fund.
    9. Benhabib, J. & Spiegel, M., 1992. "The Role of Human Capital in economic Development: Evidence form Aggregate Cross-Country Regional U.S. Data," Working Papers 92-46, C.V. Starr Center for Applied Economics, New York University.
    10. Londregan, J. & Poole, K.T., 1991. "The Seizure of Executive Power and Economic Growth: Some Additional Evidence," GSIA Working Papers 1991-6, Carnegie Mellon University, Tepper School of Business.
    11. Pranab Bardhan & Dilip Mookherjee, 2010. "Determinants of Redistributive Politics: An Empirical Analysis of Land Reforms in West Bengal, India," American Economic Review, American Economic Association, vol. 100(4), pages 1572-1600, September.
    12. Gasiorowski, Mark J., 1995. "Economic Crisis and Political Regime Change: An Event History Analysis," American Political Science Review, Cambridge University Press, vol. 89(4), pages 882-897, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Isaac K. Ofori & Mark K. Armah & Emmanuel E. Asmah, 2021. "Towards the Reversal of Poverty and Income Inequality Setbacks Due to COVID-19: The Role of Globalisation and Resource Allocation," Working Papers 21/043, European Xtramile Centre of African Studies (EXCAS).
    2. Markus Brueckner & Daniel Lederman, 2018. "Inequality and economic growth: the role of initial income," Journal of Economic Growth, Springer, vol. 23(3), pages 341-366, September.
    3. Christopher Hartwell, 2022. "Institutions and trade‐related inequality," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 3246-3264, July.
    4. Peter Peshev, 2015. "Analysis of the Wealth Inequality Dynamics in Bulgaria: Different Approach," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 4, pages 29-33, December.
    5. Mark Edem Kunawotor & Charles Barnor & Raymond Dziwornu, 2021. "The Income Redistributive Effects of Taxes in Africa," Economics Bulletin, AccessEcon, vol. 41(3), pages 1579-1591.
    6. Wang, Wei & Yang, Haoxi & Wang, Xi, 2023. "Financial development and wage income: Evidence from the global football market," Journal of Banking & Finance, Elsevier, vol. 149(C).
    7. Giovanni Dosi & Marcelo Pereira & Andrea Roventini & Maria Enrica Virgillito, 2016. "The Effects of Labour Market Reforms upon Unemployment and Income Inequalities: an Agent Based Model," Working Papers hal-03459264, HAL.
    8. Mark Edem Kunawotor & Godfred Alufar Bokpin & Patrick O. Asuming & Kofi A. Amoateng, 2022. "The distributional effects of fiscal and monetary policies in Africa," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 24(1), pages 127-146, June.
    9. International Monetary Fund, 2017. "Cluster Report: Trade Integration in Latin America and the Caribbean," IMF Staff Country Reports 2017/066, International Monetary Fund.
    10. Aswini Kumar Mishra & Vedant Bhardwaj, 2021. "Wealth distribution and accounting for changes in wealth inequality: empirical evidence from India, 1991–2012," Economic Change and Restructuring, Springer, vol. 54(2), pages 585-620, May.
    11. Eva Militaru & Madalina Ecaterina Popescu & Amalia Cristescu & Maria Denisa Vasilescu, 2019. "Assessing Minimum Wage Policy Implications upon Income Inequalities. The Case of Romania," Sustainability, MDPI, vol. 11(9), pages 1-20, May.
    12. Hasan, Iftekhar & Horvath, Roman & Mares, Jan, 2020. "Finance and wealth inequality," Journal of International Money and Finance, Elsevier, vol. 108(C).
    13. Conrad Scheibe, 2016. "Fiscal Consolidations and Their Effects on Income Inequality," UCL SSEES Economics and Business working paper series 2016-4, UCL School of Slavonic and East European Studies (SSEES).
    14. Giovanni Dosi & Marcelo C. Pereira & Andrea Roventini & Maria Enrica Virgillito, 2016. "The Effects of Labour Market Reforms upon Unemployment and Income Inequalities: an Agent Based Model," LEM Papers Series 2016/27, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    15. repec:hal:spmain:info:hdl:2441/3kbkotqp1b85pa2lu2puri38p6 is not listed on IDEAS
    16. Kazeem B. Ajide & Olorunfemi Y. Alimi & Simplice A. Asongu, 2019. "Ethnic Diversity and Inequality in Sub-Saharan Africa: Do Institutions Reduce the Noise?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(3), pages 1033-1062, October.
    17. Enrico D'Elia & Roberta De Santis, 2018. "Growth divergence and income inequality in OECD countries:the role of trade and financial openness," Working Papers 5, Department of the Treasury, Ministry of the Economy and of Finance.
    18. Giovanni DOSI & Maria Enrica VIRGILLITO, 2019. "Whither the evolution of the contemporary social fabric? New technologies and old socio‐economic trends," International Labour Review, International Labour Organization, vol. 158(4), pages 593-625, December.
    19. JaeYoul Shin, 2018. "Relative Deprivation, Satisfying Rationality, and Support for Redistribution," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 140(1), pages 35-56, November.
    20. Quinonez, Pablo, 2022. "Social spending and income inequality in Latin America. A panel data approach," MPRA Paper 113538, University Library of Munich, Germany.
    21. Fei Cao & Sebastien Motsch, 2021. "Derivation of wealth distributions from biased exchange of money," Papers 2105.07341, arXiv.org.

    More about this item

    Keywords

    income inequality; democracy; socio-political instability; political regime; Sub-Saharan African countries;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mgt:youmgt:v:19:y:2021:i:1:p:49-72. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alen Jezovnik (email available below). General contact details of provider: https://edirc.repec.org/data/fmkupsi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.