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African economies and the Kuznets curve: an exploratory investigation

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  • A. Gelan
  • G. N. Price

Abstract

This article examines the relationship between income inequality and economic development in a cross-section of countries. It estimates, on a small exploratory sample, an explicit Kuznets-type inequality relationship where inequality between skilled and unskilled labour is a function of the determinants of growth implied by a standard neoclassical growth model. Parameter estimates suggest that sub-Saharan African Economies are dualistic and are situated on the segment of the Kuznets' curve where inequality increases with respect to development.

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File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/1350485032000133255&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 10 (2003)
Issue (Month): 12 ()
Pages: 747-751

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Handle: RePEc:taf:apeclt:v:10:y:2003:i:12:p:747-751

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References

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  1. Sachs, Jeffrey D & Warner, Andrew M, 1997. "Sources of Slow Growth in African Economies," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 6(3), pages 335-76, October.
  2. Barro, Robert J, 2000. " Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
  3. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May.
  4. Knowles, Stephen, 2001. "Inequality and Economic Growth: The Empirical Relationship Reconsidered in the Light of Comparable Data," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  5. Bourguignon, F. & Morrisson, C., 1995. "Inequality and Development: The Role of Dualism," DELTA Working Papers 95-32, DELTA (Ecole normale supérieure).
  6. Robert J. Barro, 1999. "Inequality, Growth, and Investment," NBER Working Papers 7038, National Bureau of Economic Research, Inc.
  7. Patrick Vanhoudt, 2000. "An assessment of the macroeconomic determinants of inequality," Applied Economics, Taylor & Francis Journals, vol. 32(7), pages 877-883.
  8. Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, vol. 57(2), pages 259-287.
  9. Jonathan R. W. Temple, 1998. "Robustness tests of the augmented Solow model," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 13(4), pages 361-375.
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Cited by:
  1. Sumie & Mototsugu Fukushige, 2007. "Globalization and Economic Inequality in the Short and Long Run: The Case of South Korea 1975-1995," Discussion Papers in Economics and Business 07-43, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  2. Muhammad Shahbaz, 2010. "Income inequality-economic growth and non-linearity: a case of Pakistan," International Journal of Social Economics, Emerald Group Publishing, vol. 37(8), pages 613-636, July.
  3. Cassandro Mendes & Olugbenga Adesida, 2013. "Income inequality and economic development: evidence from sub-Saharan African countries," Economics Bulletin, AccessEcon, vol. 33(2), pages 1565-1574.

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