Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/149913
Authors: 
Asongu, Simplice
Tchamyou, Vanessa
Year of Publication: 
2015
Series/Report no.: 
AGDI Working Paper WP/15/052
Abstract: 
This study complements existing literature by investigating how investment-driven finance affects inequality in Africa. The empirical evidence is based on restricted and unrestricted Two-Stage Least Squares and a pre-crisis periodicity (1980-2002). Inequality is measured with estimated household income inequality whereas financial development is proxied with financial depth (money supply and liquid liabilities), financial efficiency (at banking and financial system levels), financial activity (from banking and financial system perspectives) and financial size. The findings show that with the exception of foreign investment, financial dynamics of depth, efficiency, activity and size enhance equalizing income-distribution through domestic, private and public investment channels. Policy implications are discussed with particular emphasis on improving inclusive development for the post-2015 sustainable development agenda. Notably, in the current transition from Millennium Development Goals (MDGs) to Sustainable Development Goals (SDGs), mobilizing domestic resources for investment purposes may have greater inclusive benefits than overly reliance on foreign sources of capital.
Subjects: 
Finance
Investment
Poverty
Inequality
Africa
JEL: 
D60
E25
G20
I30
O55
Document Type: 
Working Paper

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