The impact of liberalisation policies on income inequality in african countries
AbstractDespite over three decades of Liberalisation policies in Africa, income-inequality has stayed persistently high. Using updated panel data of 26 African countries spanning the period 1996-2010, this study examines the effect of liberalisation policies with particular focus on financial, trade, institutional, political and economic liberalisations on income-inequality. We find: that financial liberalisation has a levitated income-redistributive effect with the magnitude of the de jure measure (KAOPEN) higher than that of the de facto measure (FDI); that exports, trade and ‘freedom to trade’ have an equality incidence on income-distribution; and that institutional and political liberalisation has a negative impact and we also find that, economic freedom has a negative income-redistributive effect possibly because of the weight of its legal component. The impact of these policies implications are discussed in detail in this study.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 43344.
Date of creation: Jun 2012
Date of revision:
Liberalisation Policies; Income Inequality; Poverty; Africa;
Find related papers by JEL classification:
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
- F5 - International Economics - - International Relations, National Security, and International Political Economy
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- F3 - International Economics - - International Finance
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
This paper has been announced in the following NEP Reports:
- NEP-AFR-2013-01-07 (Africa)
- NEP-ALL-2013-01-07 (All new papers)
- NEP-POL-2013-01-07 (Positive Political Economics)
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