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Measuring the Effect of Income Inequality, Financial Inclusion, Investment, and Unemployment, on Economic Growth in Africa: A Moderating Role of Digital Financial Technology


  • Nicholas Bamegne Nambie

    (Valley View University, Oyibi, Accra-Ghana; & University of Professional Studies, Accra, Ghana)

  • Philomena Dadzie

    (University of Professional Studies, Accra, Ghana.)

  • Dorcas Oye Haywood-Dadzie

    (University of Professional Studies, Accra, Ghana.)


The significance of understanding the effect of income inequality, financial inclusion, investment, unemployment on economic growth in Africa is imperative in academic literature, and contributes meaningfully to policy decision making. All the variables in the study play important roles in economic growth. This paper, therefore empirically analyses the contribution of income inequality, financial inclusion, investment, unemployment, on economic growth using secondary data spanning 2001 to 2022. Two-step system generalized method of moments (GMM) estimator is used to analyse the data extracted from the world development indicators (WDI). It was revealed that, income inequality and unemployment have a significant negative relationship with economic growth whilst financial inclusion and investment also have a significant positive relationship with economic growth. Also, financial technology, which is the moderator variable has significant relationship with economic growth. It was concluded that, policy makers should ensure equitable distribution of wealth, stabilize the economy, develop the skills of young entrepreneurs, and invest in financial technology to enhance economic growth in Africa.

Suggested Citation

  • Nicholas Bamegne Nambie & Philomena Dadzie & Dorcas Oye Haywood-Dadzie, 2023. "Measuring the Effect of Income Inequality, Financial Inclusion, Investment, and Unemployment, on Economic Growth in Africa: A Moderating Role of Digital Financial Technology," International Journal of Economics and Financial Issues, Econjournals, vol. 13(4), pages 111-124, July.
  • Handle: RePEc:eco:journ1:2023-04-14

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    More about this item


    Income; Inequality; Investment; Unemployment; Economic-Growth; Financial-Inclusion;
    All these keywords.

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • F3 - International Economics - - International Finance
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance


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