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The Impact of Liberalisation Policies on Inequality in Africa

  • Asongu Simplice



  • Michael E. Batuo

    (Westminster, U.K)

Despite over three decades of Liberalisation policies in Africa, income-inequality has stayed persistently high. Using updated panel data of 26 African countries spanning the period 1996-2010, this study examines the effect of liberalisation policies with particular focus on financial, trade, institutional, political and economic liberalisations on income-inequality. We find: that financial liberalisation has a levitated income-redistributive effect with the magnitude of the de jure measure (KAOPEN) higher than that of the de facto measure (FDI); that exports, trade and ‘freedom to trade’ have an equality incidence on income-distribution; and that institutional and political liberalisation has a negative impact. We also find that, economic freedom has a negative income-redistributive effect possibly because of the weight of its legal component. The impact of these policies implications are discussed in detail in this study.

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Paper provided by African Governance and Development Institute. in its series Working Papers with number 12/038.

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Length: 38
Date of creation: 19 Jun 2012
Date of revision:
Handle: RePEc:agd:wpaper:12/038
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