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Effect of Trade on Income Inequality in sub-Saharan Africa: A note

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  • Ogundari, Kolawole

Abstract

The paper examines the effect of trade on income inequality in sub-Saharan Africa (SSA) countries. We employ a balanced panel of 11 countries covering 1980-2008 and use a fractional regression model for panel data as a method of estimation. The empirical results show that trade decreases income inequality, which might be an indication that our findings support the Stolper-Samuelson (SS) theorem in the Heckscher-Ohlin (HO) model in SSA. We also found evidence that lack of democracy (i.e., the existence of autocracy) increases income inequality, while higher educational attainment decreases income inequality in the study

Suggested Citation

  • Ogundari, Kolawole, 2021. "Effect of Trade on Income Inequality in sub-Saharan Africa: A note," MPRA Paper 110200, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:110200
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    References listed on IDEAS

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    More about this item

    Keywords

    fractional regression; income inequality; education; political right; trade; SSA;
    All these keywords.

    JEL classification:

    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • F1 - International Economics - - Trade
    • F18 - International Economics - - Trade - - - Trade and Environment

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