Why is Africa so Poor? A Structural Model of Economic Development and Income Inequality
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 Ã¢â‚¬Å“Africa dummyÃ¢â‚¬Â in previous cross-country growth studies.
|Date of creation:||01 May 2000|
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