FINANCIALIZATION AND INCOME INEQUALITY IN AFRICA: A STUDY OF SELECTED SUB-SAHARAN ECONOMIES

  • Yusuf Aina SOYEBO
  • Mathew. Adeolu Abata.
  • Godwin OMOREGBEE
  • Babatunde Sulaiman ADEYEMI
Keywords: Financialization, Income inequality, Stock traded, Gini index,

Abstract

The growing relevance of financial markets, institutions, and their motivations in the operations of modern economy has placed the global activities on a dynamic financial technological practice that involves growing financial services relative to traditional productive activities. This study explores the nature of the influence of financialization on income inequality in selected sub-Saharan economies in order to have statistical basis to justify the complex nature of their interactions. Secondary data on variables such as private sector claims, stock traded, government expenditure and trade were obtained from 15 selected countries between 1980 to 2022 which gives 645 observations as contained in the World Bank Development Index, 2022. The statistical output obtained from the Generalized Method of Moment (GMM) revealed that private sector claims, and stock trades have positive influence on income inequality within the period reviewed. Thus, the study concluded that there is a need for a deliberate effort to address this reverse development that is widening the income inequality gap in order to attain meaningful development in sub-Saharan Africa.

References

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Published
2023-12-26