Globalization, financial depth, and inequality in Sub-Saharan Africa
This 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.
Volume (Year): 29 (2009)
Issue (Month): 3 ()
|Contact details of provider:|| |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Thorsten Beck & Asli Demirguc-Kunt & Ross Levine, 2004.
"Finance, Inequality, and Poverty: Cross-Country Evidence,"
NBER Working Papers
10979, National Bureau of Economic Research, Inc.
- Beck, Thorsten & Demirguc-Kunt, Asli & Levine, Ross, 2004. "Finance, inequality, and poverty: cross-country evidence," Policy Research Working Paper Series 3338, The World Bank.
- James B. Ang, 2010.
"Finance and Inequality: The Case of India,"
Southern Economic Journal,
Southern Economic Association, vol. 76(3), pages 738-761, January.
- James Ang, 2008. "Finance And Inequality: The Case Of India," Monash Economics Working Papers 08/08, Monash University, Department of Economics.
- James B. Ang, 2008. "Finance And Inequality: The Case Of India," CAMA Working Papers 2008-18, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
- Zhu, Susan Chun & Trefler, Daniel, 2005. "Trade and inequality in developing countries: a general equilibrium analysis," Journal of International Economics, Elsevier, vol. 65(1), pages 21-48, January.
- Miguel Székely & Nancy Birdsall & Jere R. Behrman, 2000.
"Economics Reform and Wage Differentials in Latin America,"
Research Department Publications
4235, Inter-American Development Bank, Research Department.
- Miguel Székely & Nancy Birdsall & Jere R. Behrman, 2000. "Economics Reform and Wage Differentials in Latin America," IDB Publications (Working Papers) 6476, Inter-American Development Bank.
- Branko Milanovic & Lyn Squire, 2005.
"Does Tariff Liberalization Increase Wage Inequality? Some Empirical Evidence,"
NBER Working Papers
11046, National Bureau of Economic Research, Inc.
- Branko Milanovic & Lyn Squire, 2007. "Does Tariff Liberalization Increase Wage Inequality? Some Empirical Evidence," NBER Chapters, in: Globalization and Poverty, pages 143-182 National Bureau of Economic Research, Inc.
- Milanovic, Branko & Squire, Lyn, 2005. "Does tariff liberalization increase wage inequality ? - Some empirical evidence," Policy Research Working Paper Series 3571, The World Bank.
- Branko Milanovic & Lyn Squire, 2005. "Does tariff liberalization increase wage inequality? Some empirical evidence," International Trade 0502012, EconWPA.
- Branko Milanovic & Lyn Squire, 2005. "Does tariff liberalization increase wage inequality? Some empirical evidence," Labor and Demography 0501012, EconWPA.
- Round, Jeffery I., 2007. "Globalization, Growth, Inequality and Poverty in Africa: A Macroeconomic Perspective," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Branko Milanovic, 2003.
"CAN WE DISCERN THE EFFECT OF GLOBALIZATION ON INCOME DISTRIBUTION? Evidence from Household Budget Surveys,"
- Milanovic, Branko, 2002. "Can we discern the effect of globalization on income distribution? evidence from household budget surveys," Policy Research Working Paper Series 2876, The World Bank.
- Feenstra, Robert C & Hanson, Gordon H, 1996.
"Globalization, Outsourcing, and Wage Inequality,"
American Economic Review,
American Economic Association, vol. 86(2), pages 240-45, May.
- Wood, Adrian, 1995. "North-South Trade, Employment and Inequality: Changing Fortunes in a Skill-Driven World," OUP Catalogue, Oxford University Press, number 9780198290155, December.
- Gradstein, Mark & Milanovic, Branko & Ying, Yvonne, 2001.
"Democracy and income inequality : an empirical analysis,"
Policy Research Working Paper Series
2561, The World Bank.
- Mark Gradstein & Branko Milanovic & Yvonne Ying, 2001. "Democracy and Income In-Equality: An Empirical Analysis," CESifo Working Paper Series 411, CESifo Group Munich.
- Wagle, Udaya R., 2007. "Are Economic Liberalization and Equality Compatible? Evidence from South Asia," World Development, Elsevier, vol. 35(11), pages 1836-1857, November.
- Wade, Robert Hunter, 2004. "Is Globalization Reducing Poverty and Inequality?," World Development, Elsevier, vol. 32(4), pages 567-589, April.
- Demetriades, Panicos O & Luintel, Kul B, 1996. "Financial Development, Economic Growth and Banker Sector Controls: Evidence from India," Economic Journal, Royal Economic Society, vol. 106(435), pages 359-74, March.
- Li, Hongyi & Squire, Lyn & Zou, Heng-fu, 1998.
"Explaining International and Intertemporal Variations in Income Inequality,"
Royal Economic Society, vol. 108(446), pages 26-43, January.
- Hongyi Li & Lyn Squire & Heng-fu Zou, 1998. "Explaining International and Intertemporal Variations in Income Inequality," CEMA Working Papers 73, China Economics and Management Academy, Central University of Finance and Economics.
- J. A. Hausman, 1976.
"Specification Tests in Econometrics,"
185, Massachusetts Institute of Technology (MIT), Department of Economics.
- Jalilian, Hossein & Kirkpatrick, Colin, 2002. "Financial Development and Poverty Reduction in Developing Countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 7(2), pages 97-108, April.
- Panicos O Demetriades & Kul B Luintel, 2000.
"Financial Restraints in the South Korean Miracle,"
Discussion Papers in Economics
00/5, Department of Economics, University of Leicester.
- Gaston, Noel & Nelson, Douglas, 2002. "Integration, Foreign Direct Investment and Labour Markets: Microeconomic Perspectives," Manchester School, University of Manchester, vol. 70(3), pages 420-59, June.
- Feenstra, Robert C. & Hanson, Gordon H., 1997.
"Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras,"
Journal of International Economics,
Elsevier, vol. 42(3-4), pages 371-393, May.
- Robert C. Feenstra & Gordon H. Hanson, 1995. "Foreign Direct Investment and Relative Wages: Evidence from Mexico's Maquiladoras," NBER Working Papers 5122, National Bureau of Economic Research, Inc.
- Axel Dreher & Noel Gaston, 2008.
"Has Globalization Increased Inequality?,"
Review of International Economics,
Wiley Blackwell, vol. 16(3), pages 516-536, 08.
- Fosu, Augustin Kwasi & Mold, Andrew, 2007.
"Gains from Trade: Implications for Labour Market Adjustment and Poverty Reduction in Africa,"
Working Paper Series
UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Augustin Fosu & Andrew Mold, 2008. "Gains from Trade: Implications for Labour Market Adjustment and Poverty Reduction in Africa," African Development Review, African Development Bank, vol. 20(1), pages 20-47.
- Adrian Wood, 2002. "Globalization and wage inequalities: A synthesis of three theories," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(1), pages 54-82, March.
- Philip Arestis & Asena Caner, 2004. "Financial Liberalization and Poverty: Channels of Influence," Economics Working Paper Archive wp_411, Levy Economics Institute.
- Kevin Sylwester, 2005. "Foreign direct investment, growth and income inequality in less developed countries," International Review of Applied Economics, Taylor & Francis Journals, vol. 19(3), pages 289-300.
- Courakis, Anthony S, 1984. "Constraints on Bank Choices and Financial Repression in Less Developed Countries," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 46(4), pages 341-70, November.
- M.O. Odedokun & Jeffery Round, 2004. "Determinants of Income Inequality and its Effects on Economic Growth: Evidence from African Countries," African Development Review, African Development Bank, vol. 16(2), pages 287-327.
- Claessens, Stijn & Perotti, Enrico, 2007. "Finance and inequality: Channels and evidence," Journal of Comparative Economics, Elsevier, vol. 35(4), pages 748-773, December.
When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-09-00470. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.