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Why is Africa so poor? A structural model of economic development and income inequality

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  • David Fielding

Abstract

The paper extends existing work on inequality and economic development by estimating a cross-country structural model that identifies bi-directional relationships between income inequality and other indicators of social and economic development. Overall, lower inequality is associated with improvements in other development indicators, but this is the result of several complex interactions. The most striking feature of the structural model is the insight it provides into the reasons behind the negative “Africa dummy” in previous cross-country growth studies.

Suggested Citation

  • David Fielding, 2001. "Why is Africa so poor? A structural model of economic development and income inequality," CSAE Working Paper Series 2001-05, Centre for the Study of African Economies, University of Oxford.
  • Handle: RePEc:csa:wpaper:2001-05
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    File URL: http://www.csae.ox.ac.uk/materials/papers/2001-05text.pdf
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    Cited by:

    1. Gary G. Moser & Toshihiro Ichida, 2001. "Economic Growth and Poverty Reduction in Sub-Saharan Africa," IMF Working Papers 01/112, International Monetary Fund.

    More about this item

    Keywords

    income distribution; social and economic development;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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