UNSPECIFIED (2004) Determinants of income inequality and its effects on economic growth: Evidence from African countries. In: Conference on Growth and Poverty, MAY, 2001, Helsinki, FINLAND.

Full text not available from this repository.

Abstract

The paper empirically investigates, in the context of African countries, the determinants of income distribution and inequality, the effect of inequality on economic growth, and the channels through which inequality affects growth. Data for 35 countries over different periods in the last four decades are employed. Factors identified as having affected income distribution include the level of economic development attained, regional factors, size of government budget and the amount of it devoted to subsidies and transfers, phase of economic cycle, share of agricultural sector in total labour force, as well as human and land resources endowment. Some evidence that high inequality reduces growth is also found. The channels through which inequality affect growth are found to be through reduction in secondary and tertiary education investment, reduction in political stability, and increase in fertility rate. There is, however, no evidence that it affects private saving and investment or the size of government expenditure and taxation, contrary to what is contended in the theoretical literature.

Item Type:	Conference Item (UNSPECIFIED)
Subjects:	H Social Sciences > HD Industries. Land use. Labor
Journal or Publication Title:	AFRICAN DEVELOPMENT REVIEW-REVUE AFRICAINE DE DEVELOPPEMENT
Publisher:	BLACKWELL PUBL LTD
ISSN:	1017-6772
Date:	September 2004
Volume:	16
Number:	2
Number of Pages:	41
Page Range:	pp. 287-327
Publication Status:	Published
Title of Event:	Conference on Growth and Poverty
Location of Event:	Helsinki, FINLAND
Date(s) of Event:	MAY, 2001
URI:	http://wrap.warwick.ac.uk/id/eprint/7502

Data sourced from Thomson Reuters' Web of Knowledge

Request changes to a record

Actions (login required)

View Item