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Finance and inequality: exploring pro-poor investment channels in Africa

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  • Simplice A., Asongu

Abstract

Hitherto very few studies on the inequality-finance(investment) nexus have focused on the African continent owing to lack of relevant data. This paper integrates previously missing investment and financial components in the assessment of how finance affects pro-poor investment channels. Findings reveal, but for the case of foreign investment, financial development dynamics of depth, efficiency, activity and size have an equalizing effect on income distribution through private, public and domestic investment channels. As a policy implication investment-targeted financial reforms that aim to curb poverty should take account of the disequalizing income-effect of foreign investment in undeveloped countries.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 34994.

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Date of creation: 25 Nov 2011
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Handle: RePEc:pra:mprapa:34994

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Keywords: Finance; Investment; Poverty; Inequality; Africa;

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Citations

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Cited by:
  1. Simplice A, Asongu, 2012. "African Development: Beyond Income Convergence," MPRA Paper, University Library of Munich, Germany 36054, University Library of Munich, Germany.
  2. Asongu Simplice & Michael E. Batuo, 2012. "The Impact of Liberalisation Policies on Inequality in Africa," Working Papers, African Governance and Development Institute. 12/038, African Governance and Development Institute..
  3. Simplice A, Asongu, 2012. "Globalization, (fighting) corruption and development: how are these phenomena linearly and nonlinearly related in wealth effects?," MPRA Paper, University Library of Munich, Germany 36899, University Library of Munich, Germany.
  4. Asongu Simplice, 2013. "Inequality, poverty and quality of institutions: which freedom channels of globalization matter for Africa?," Working Papers, African Governance and Development Institute. 13/014, African Governance and Development Institute..
  5. Enowbi Batuo, Michael & Asongu, Simplice A., 2012. "The impact of liberalisation policies on income inequality in african countries," MPRA Paper, University Library of Munich, Germany 43344, University Library of Munich, Germany.
  6. Asongu Simplice, 2012. "Globalization and Africa: implications for human development," Working Papers, African Governance and Development Institute. 12/022, African Governance and Development Institute..

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