Globalization, Financial Depth, and Inequality in Sub-Saharan Africa
AbstractThis paper examines the relationship between globalization, financial deepening, and inequality in sub-Saharan Africa between 1980 and 2002. We provide the first detailed econometric analysis in this regard covering the entire sub-Saharan African region; such an analysis has hardly been conducted owing to the lack of relevant data. We find that while globalization deteriorates inequality, its disequalizing effect depends on the level of development of the country. Further, this paper confirms that globalization deteriorates the equalizing effect of financial depth, although the latter helps to reduce inequality. We conclude that in sub-Saharan Africa, as a result of globalization, the rich have become richer and the poor have become poorer.
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Bibliographic InfoPaper provided by Graduate School of Economics, Kobe University in its series Discussion Papers with number 0912.
Date of creation: Aug 2009
Date of revision:
Globalization; Financial Depth; Inequality; Sub-Saharan Africa;
Other versions of this item:
- Hisako Kai & Shigeyuki Hamori, 2009. "Globalization, financial depth, and inequality in Sub-Saharan Africa," Economics Bulletin, AccessEcon, vol. 29(3), pages 2025-2037.
- F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
This paper has been announced in the following NEP Reports:
- NEP-AFR-2009-08-22 (Africa)
- NEP-ALL-2009-08-22 (All new papers)
- NEP-DEV-2009-08-22 (Development)
- NEP-OPM-2009-08-22 (Open Economy Macroeconomic)
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