ARTÍCULO
TITULO

Microfinance, Financial Development, Foreign Aid, and Income Inequality: Evidence from Sub-Saharan Africa

Mongi Lassoued    

Resumen

This paper examines the effects of microfinance, financial development and foreign aid on income inequality for 43 Sub-Saharan African (SSA) countries. Panel data for the period 1995?2015 is examined using fixed effects, pooled ordinary least square and system generalized method of moments (GMM) estimation techniques. Findings suggest that although foreign aid plays a determining role in explaining the dynamics of inequality in SSA, it does not appear to be pro-poor. Moreover, the results reveal that both microfinance and financial development contribute to narrowing the income gap between the poor and the rich and to reducing inequality. This implies that providing access to loans through microfinance institutions or bank-based financial system offer to the poor the potential for income-generating activities. Furthermore, the empirical evidence suggests that GDP per capita growth and government expenditures appear to be pro-poor. While a rapid population growth, high levels of inflation, FDI and trade openness are correlated, positively and significantly, with greater income inequality. These results have important policy implications for SSA. Enhancing the efficiency of social protection, promoting progressive taxation and distributional effectiveness of fiscal are crucial to address income inequalities.Keywords: Income inequality, Microfinance, Financial development, Foreign aid, Sub-Saharan Africa  JEL Classifications: C23; D63; F35; O55DOI: https://doi.org/10.32479/ijefi.11277

 Artículos similares

       
 
Mega Barokatul Fajri,Guruh Marhaenis Handoko Putro,Jennifer Farihatul Bait,Ira Megasyara     Pág. 21 - 42
This research aims to analyze each of the operational and financial factors that can be used as variables influencing decisions and the intensity of hedging. There are two test analysis model used in this study, the first to test the company decision to ... ver más

 
Ayman Hassan Bazhair and Hamid Ghazi H Sulimany    
This paper explores the moderating role of family ownership in the relationship between board diversity and financial performance. The study sampled data of 98 Saudi non-financial companies from 2012 to 2021. The data were analysed using fixed effect reg... ver más

 
Marina Beljic,Olgica Glava?ki,Jovica Pejcic     Pág. 039 - 052
After global financial crisis, intensive tax policies adjustments were applied in emerging European Union (EU) economies, for the sake of tax competitiveness. In order to ensure that aim, emerging EU economies most often choose the policy of tax reductio... ver más

 
Saleh F. A. Khatib, Hamzeh Al Amosh and Husam Ananzeh    
We aim to provide a comprehensive systematic analysis of scholarly publications in the field of board compensation in financial sectors extending through the years 1987 to 2021. Hence, the most notable themes, theories, and contributions to the literatur... ver más

 
Maud Korley and Evangelos Giouvris    
Research proposes that economic policy uncertainty (EPU) leads to exchange rate fluctuations. Given that African countries experience higher levels of uncertainty in developed/emerging markets, we examine the extent to which domestic and foreign EPU affe... ver más