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Financial Openness and Income Inequality in Sub-Saharan Africa: The Role of Development Level and Access to Land

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  • Mounoufié Valery Koffi
  • Konan Abogni Augustin Kouadio

Abstract

The aim of this study is to analyze the relationship between financial openness and income inequality in Sub-Saharan Africa by controlling the level of development and access to land. By applying the generalized method of moments (GMM) to a sample of 38 countries over the period 2010–2019, the main results are as follows: (i) De facto financial openness reduces income inequality, while de jure financial openness exacerbates income inequality; (ii) Access to land mitigates the effect of de jure openness on income inequalities; (iii) the income level amplifies the effect of reducing financial openness on income inequalities. It follows from these results that access to land can be an excellent instrument for reducing income inequality at the national level due to the reduction of the income gap between rural and urban areas.

Suggested Citation

  • Mounoufié Valery Koffi & Konan Abogni Augustin Kouadio, 2024. "Financial Openness and Income Inequality in Sub-Saharan Africa: The Role of Development Level and Access to Land," European Journal of Business and Management Research, European Open Science, vol. 9(5), pages 151-155, September.
    • Handle: RePEc:epw:ejbmr0:v:9:y:2024:i:5:id:52454
    DOI: 10.24018/ejbmr.2024.9.5.2454
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