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Middle class in Africa: Determinants and Consequences

Author

Listed:
  • Oasis Kodila-Tedika

    () (Kinshasa, DRC)

  • Simplice A. Asongu

    () (Yaoundé, Cameroon)

  • Julio Mukendi Kayembe

    (Economiste, Rawbank)

Abstract

This study complements the inclusive growth literature by examining the determinants and consequences of the middle class in a continent where economic growth has been relatively high. The empirical evidence is based on a sample of 33 African countries for a 2010 cross-sectional study. OLS, 2SLS, 3SLS and SUR estimation techniques are employed to regress a plethora of middle class indicators, notably, the: floating, middle-class with floating, middle-class without floating, lower-middle-income and upper-middle-income categories. Results can be classified into two main strands. First, results on determinants broadly show that GDP per capita and education positively affect all middle class dependent variables. However, we have seen a negative nexus for the effect of ethnic fragmentation, political stability in general and partially for economic vulnerability. Simple positive correlations have been observed for: the size of the informal sector, openness and democracy. Second, on the consequences, the middle class enables the accumulation of human and infrastructural capital, while its effect is null on political stability and democracy in the short-run but positive for governance and modernisation. Policy implications are discussed.

Suggested Citation

  • Oasis Kodila-Tedika & Simplice A. Asongu & Julio Mukendi Kayembe, 2014. "Middle class in Africa: Determinants and Consequences," Research Africa Network Working Papers 14/026, Research Africa Network (RAN).
  • Handle: RePEc:abh:wpaper:14/026
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    Cited by:

    1. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Income Levels, Governance and Inclusive Human Development in Sub-Saharan Africa," CEREDEC Working Papers 19/036, Centre de Recherche pour le Développement Economique (CEREDEC).
    2. Jean-Philippe Berrou & Dominique Darbon & Christian Bouquet & Anne Bekelynck & Matthieu Clément & François Combarnous & Eric Rougier, 2018. "Le réveil des classes moyennes ivoiriennes ? Identification, caractérisation et implications pour les politiques publiques," Post-Print hal-02147840, HAL.
    3. Simplice A. Asongu & Oasis Kodila-Tedika, 2018. "Institutions and Poverty: A Critical Comment Based on Evolving Currents and Debates," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(1), pages 99-117, August.
    4. Simplice A. Asongu & Ivo J. Leke, 2019. "External flows and inclusive human development in Sub-Saharan Africa," International Journal of Happiness and Development, Inderscience Enterprises Ltd, vol. 5(1), pages 33-56.
    5. Simplice A. Asongu & Joseph Nnanna, 2020. "Inclusive Human Development in Sub-Saharan Africa," Working Papers of the African Governance and Development Institute. 20/014, African Governance and Development Institute..
    6. Jean-Philippe Berrou & Damien Girollet, 2019. "A la recherche des « gazelles » du secteur informel urbain africain. Entreprises et entrepreneurs à fort potentiel dans leur environnement socioéconomique et numérique," Working Papers hal-02507441, HAL.
    7. Simplice A. Asongu & Sara le Roux, 2018. "Understanding Sub-Saharan Africa’s Extreme Poverty Tragedy," Research Africa Network Working Papers 18/012, Research Africa Network (RAN).
    8. Jean-Philippe Berrou & Dominique Darbon & Christian Bouquet & Anne Bekelynck & Matthieu Clément & François Combarnous & Eric Rougier, 2018. "Le réveil des classes moyennes ivoiriennes ? Identification, caractérisation et implications pour les politiques publiques," Working Papers hal-02147840, HAL.
    9. Jean-Philippe BERROU, 2018. "Le réveil des classes moyennes ivoiriennes ? Identification, caractérisation et implications pour les politiques publiques," Working Paper 6e6633ec-f96a-4f9f-a240-7, Agence française de développement.
    10. Simplice A. Asongu & Nicholas M. Odhiambo, 0. "Income Levels, Governance and Inclusive Human Development in Sub-Saharan Africa," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 0, pages 1-33.
    11. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2017. "Quality of Growth Empirics: Comparative gaps, benchmarking and policy syndromes," Journal of Policy Modeling, Elsevier, vol. 39(5), pages 861-882.
    12. Simplice Asongu, 2015. "Growth and Institutions in African Development, by Augustin K. Fosu," Working Papers of the African Governance and Development Institute. 15/033, African Governance and Development Institute..
    13. Simplice A. Asongu & Paul N. Acha-Anyi, 2020. "A survey on the Washington Consensus and the Beijing Model: reconciling development perspectives," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 67(2), pages 111-129, June.
    14. Simplice A. Asongu & Jacinta C. Nwachukwu, 2016. "Mobile Phone Penetration, Mobile Banking and Inclusive Development in Africa," The African Finance Journal, Africagrowth Institute, vol. 18(1), pages 34-52.
    15. Simplice Asongu & Sara le Roux, 2018. "Understanding Sub-Saharan Africa’s Extreme Poverty Tragedy," Working Papers of the African Governance and Development Institute. 18/012, African Governance and Development Institute..

    More about this item

    Keywords

    Poverty; Inequality; Middle class; Africa;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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