Globalization, Financial Depth, and Inequality in Sub-Saharan Africa
This paper examines the relationship between globalization, financial deepening, and inequality in sub-Saharan Africa between 1980 and 2002. We provide the first detailed econometric analysis in this regard covering the entire sub-Saharan African region; such an analysis has hardly been conducted owing to the lack of relevant data. We find that while globalization deteriorates inequality, its disequalizing effect depends on the level of development of the country. Further, this paper confirms that globalization deteriorates the equalizing effect of financial depth, although the latter helps to reduce inequality. We conclude that in sub-Saharan Africa, as a result of globalization, the rich have become richer and the poor have become poorer.
|Date of creation:||Aug 2009|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.econ.kobe-u.ac.jp|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gaston, Noel & Nelson, Douglas, 2002. "Integration, Foreign Direct Investment and Labour Markets: Microeconomic Perspectives," Manchester School, University of Manchester, vol. 70(3), pages 420-59, June.
- James B. Ang, 2008.
"Finance And Inequality: The Case Of India,"
CAMA Working Papers
2008-18, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
- Claessens, Stijn & Perotti, Enrico, 2007. "Finance and inequality: Channels and evidence," Journal of Comparative Economics, Elsevier, vol. 35(4), pages 748-773, December.
- Demetriades, Panicos O. & Luintel, Kul B., 2001.
"Financial restraints in the South Korean miracle,"
Journal of Development Economics,
Elsevier, vol. 64(2), pages 459-479, April.
- Jalilian, Hossein & Kirkpatrick, Colin, 2002. "Financial Development and Poverty Reduction in Developing Countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 7(2), pages 97-108, April.
- Augustin Fosu & Andrew Mold, 2008.
"Gains from Trade: Implications for Labour Market Adjustment and Poverty Reduction in Africa,"
African Development Review,
African Development Bank, vol. 20(1), pages 20-47.
- Fosu, Augustin Kwasi & Mold, Andrew, 2007. "Gains from Trade: Implications for Labour Market Adjustment and Poverty Reduction in Africa," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Branko Milanovic & Lyn Squire, 2007.
"Does Tariff Liberalization Increase Wage Inequality? Some Empirical Evidence,"
in: Globalization and Poverty, pages 143-182
National Bureau of Economic Research, Inc.
- Milanovic, Branko & Squire, Lyn, 2005. "Does tariff liberalization increase wage inequality ? - Some empirical evidence," Policy Research Working Paper Series 3571, The World Bank.
- Branko Milanovic & Lyn Squire, 2005. "Does Tariff Liberalization Increase Wage Inequality? Some Empirical Evidence," NBER Working Papers 11046, National Bureau of Economic Research, Inc.
- Branko Milanovic & Lyn Squire, 2005. "Does tariff liberalization increase wage inequality? Some empirical evidence," International Trade 0502012, EconWPA.
- Branko Milanovic & Lyn Squire, 2005. "Does tariff liberalization increase wage inequality? Some empirical evidence," Labor and Demography 0501012, EconWPA.
- Wade, Robert Hunter, 2004. "Is Globalization Reducing Poverty and Inequality?," World Development, Elsevier, vol. 32(4), pages 567-589, April.
- Axel Dreher & Noel Gaston, 2008.
"Has Globalization Increased Inequality?,"
Review of International Economics,
Wiley Blackwell, vol. 16(3), pages 516-536, 08.
- Robert C. Feenstra & Gordon H. Hanson, 1995.
"Foreign Direct Investment and Relative Wages: Evidence from Mexico's Maquiladoras,"
NBER Working Papers
5122, National Bureau of Economic Research, Inc.
- Feenstra, Robert C. & Hanson, Gordon H., 1997. "Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras," Journal of International Economics, Elsevier, vol. 42(3-4), pages 371-393, May.
- Mark Gradstein & Branko Milanovic & Yvonne Ying, 2001.
"Democracy and Income In-Equality: An Empirical Analysis,"
CESifo Working Paper Series
411, CESifo Group Munich.
- Gradstein, Mark & Milanovic, Branko & Ying, Yvonne, 2001. "Democracy and income inequality : an empirical analysis," Policy Research Working Paper Series 2561, The World Bank.
- Round, Jeffery I., 2007. "Globalization, Growth, Inequality and Poverty in Africa: A Macroeconomic Perspective," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Miguel Székely & Nancy Birdsall & Jere R. Behrman, 2000.
"Economics Reform and Wage Differentials in Latin America,"
IDB Publications (Working Papers)
6476, Inter-American Development Bank.
- Miguel Székely & Nancy Birdsall & Jere R. Behrman, 2000. "Economics Reform and Wage Differentials in Latin America," Research Department Publications 4235, Inter-American Development Bank, Research Department.
- Wagle, Udaya R., 2007. "Are Economic Liberalization and Equality Compatible? Evidence from South Asia," World Development, Elsevier, vol. 35(11), pages 1836-1857, November.
- Hongyi Li & Lyn Squire & Heng-fu Zou, 1998.
"Explaining International and Intertemporal Variations in Income Inequality,"
CEMA Working Papers
73, China Economics and Management Academy, Central University of Finance and Economics.
- Li, Hongyi & Squire, Lyn & Zou, Heng-fu, 1998. "Explaining International and Intertemporal Variations in Income Inequality," Economic Journal, Royal Economic Society, vol. 108(446), pages 26-43, January.
- Zhu, Susan Chun & Trefler, Daniel, 2005. "Trade and inequality in developing countries: a general equilibrium analysis," Journal of International Economics, Elsevier, vol. 65(1), pages 21-48, January.
- Demetriades, Panicos O & Luintel, Kul B, 1996. "Financial Development, Economic Growth and Banker Sector Controls: Evidence from India," Economic Journal, Royal Economic Society, vol. 106(435), pages 359-74, March.
- Adrian Wood, 2002. "Globalization and wage inequalities: A synthesis of three theories," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(1), pages 54-82, March.
- Thorsten Beck & Asli Demirguc-Kunt & Ross Levine, 2004.
"Finance, Inequality, and Poverty: Cross-Country Evidence,"
NBER Working Papers
10979, National Bureau of Economic Research, Inc.
- Beck, Thorsten & Demirguc-Kunt, Asli & Levine, Ross, 2004. "Finance, inequality, and poverty: cross-country evidence," Policy Research Working Paper Series 3338, The World Bank.
- Milanovic, Branko, 2002.
"Can we discern the effect of globalization on income distribution? evidence from household budget surveys,"
Policy Research Working Paper Series
2876, The World Bank.
- Branko Milanovic, 2003. "CAN WE DISCERN THE EFFECT OF GLOBALIZATION ON INCOME DISTRIBUTION? Evidence from Household Budget Surveys," International Trade 0303004, EconWPA.
- Kevin Sylwester, 2005. "Foreign direct investment, growth and income inequality in less developed countries," International Review of Applied Economics, Taylor & Francis Journals, vol. 19(3), pages 289-300.
- Robert C. Feenstra & Gordon H. Hanson, 1996.
"Globalization, Outsourcing, and Wage Inequality,"
NBER Working Papers
5424, National Bureau of Economic Research, Inc.
- Philip Arestis & Asena Caner, 2004. "Financial Liberalization and Poverty: Channels of Influence," Economics Working Paper Archive wp_411, Levy Economics Institute.
- Hausman, Jerry, 2015.
"Specification tests in econometrics,"
Publishing House "SINERGIA PRESS", vol. 38(2), pages 112-134.
- Wood, Adrian, 1995. "North-South Trade, Employment and Inequality: Changing Fortunes in a Skill-Driven World," OUP Catalogue, Oxford University Press, number 9780198290155, March.
- M.O. Odedokun & Jeffery Round, 2004. "Determinants of Income Inequality and its Effects on Economic Growth: Evidence from African Countries," African Development Review, African Development Bank, vol. 16(2), pages 287-327.
- Courakis, Anthony S, 1984. "Constraints on Bank Choices and Financial Repression in Less Developed Countries," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 46(4), pages 341-70, November.
When requesting a correction, please mention this item's handle: RePEc:koe:wpaper:0912. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Econ Kobe SysAdmin)
If references are entirely missing, you can add them using this form.