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Public debt and inequality in Sub-Saharan Africa: the case of EMCCA and WAEMU countries

Author

Listed:
  • Mihai Mutascu

    (West University of Timisoara
    International Management Institute, ZHAW School of Management and Law
    Chair of International & Digital Economics, Zeppelin University in Friedrichshafen)

  • Albert Lessoua

    (OMNES Education - Paris)

  • Nicolae Bogdan Ianc

    (West University of Timisoara
    University of Orléans)

Abstract

The paper investigates whether public debt explains income inequality in several Sub-Saharan African (SSA) countries. The core method employed is the Bayesian Model Averaging (BMA) estimator, which uses a dataset covering the period 1997–2019. The key findings reveal that public debt tends to reduce inequality among the poor but may harm the rich in the WAEMU region. Public debt generally has a neutral impact on inequality in EMCCA but can improve income distribution among the rich under stringent corruption control. In terms of contributions, the paper is one of the first works that examine how public debt impacts inequality in the Sub-Saharan African (SSA) countries across different levels of income. Moreover, it explores the intricate relationship among public debt, socio-economic characteristics, corruption, and inequality within the region.

Suggested Citation

  • Mihai Mutascu & Albert Lessoua & Nicolae Bogdan Ianc, 2024. "Public debt and inequality in Sub-Saharan Africa: the case of EMCCA and WAEMU countries," Economic Change and Restructuring, Springer, vol. 57(5), pages 1-44, October.
    • Handle: RePEc:kap:ecopln:v:57:y:2024:i:5:d:10.1007_s10644-024-09744-4
    DOI: 10.1007/s10644-024-09744-4
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    Keywords

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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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