Sub‑Saharan Africa’s Tragedy: Resource Curse, Democracy and Income Inequality

Alex O Acheampong*, Janet Dzator, Matthew Abunyewah, Michael Odei Erdiaw-Kwasie, Eric Evans Osei Opoku

*Corresponding author for this work

Research output: Contribution to journalArticleResearchpeer-review

Abstract

This study utilized instrumental variable techniques and the Driscoll-Kraay estimator to examine the effect of democracy and natural resources on income inequality using a comprehensive panel dataset from 43 sub-Saharan Africa (SSA). The findings from our empirical analysis indicated that natural resources and democracy indices such as electoral, liberal, participatory, deliberative, and egalitarian drive income inequality in SSA. Regional comparative analysis also showed that the democracy indices increase income inequality in West, Central, and Southern Africa while having a neutral effect on income inequality in Eastern Africa. Natural resources were revealed to reduce income inequality in West and Southern African countries while increasing income inequality in Eastern Africa. In the case of Central Africa, natural resources play an insignificant role in income inequality. The interactive effect analysis indicates that the democracy indices interact with natural resources to increase income inequality in SSA. Finally, the democracy indices interacted with natural resources to drive income inequality in Eastern and Southern African countries while exerting an insignificant effect on income inequality in West and Central African countries. The policy implications of the findings are discussed.
Original languageEnglish
Pages (from-to)1-39
Number of pages39
JournalSocial Indicators Research
DOIs
Publication statusPublished - 29 May 2023

Fingerprint

Dive into the research topics of 'Sub‑Saharan Africa’s Tragedy: Resource Curse, Democracy and Income Inequality'. Together they form a unique fingerprint.

Cite this