Measuring the Effect of Income Inequality, Financial Inclusion, Investment, and Unemployment, on Economic Growth in Africa: A Moderating Role of Digital Financial Technology

Nambie, Nicholas Bamegne; Dadzie, Philomena; Haywood-Dadzie, Dorcas Oye

doi:10.32479/ijefi.14425

Cited by 3 publications

(1 citation statement)

References 95 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…First, although humanity has made progress in promoting economic growth, social and sustainable development issues such as poverty, inequality, and environmental pollution have not been resolved satisfactorily, and even more complicated developments (Hübler, 2017;Jiang and Ma, 2019;Jorgenson and Clark, 2012;Uzar, 2020). While the rapidly developing financial system has helped the world economy recover from the 2008 recession (Durusu-Ciftci et al, 2017;Mostafa et al, 2023;Nambie et al, 2023), governments are starting to pay attention to the effects, including positive and negative, of financial development towards sustainable development goals. If the growth of the financial system leads to a decline in environmental quality, policymakers will face a choice between promoting economic growth and protecting the environment.…”

Section: Introductionmentioning

confidence: 99%

Influence of Financial Development on Environmental Quality: Research Results from Developing Countries

Nguyen,

Le,

Ngo

et al. 2024

IJEEP

View full text Add to dashboard Cite

This study provides evidence supporting the hypothesis that financial development reduces environmental pollution in developing countries. using an annual dataset of carbon emissions, financial development, and other factors from 1990 to 2020, with the GMM approach, We find that the more developed the financial system, the more advantageous it is for the environment. This conclusion is strengthened when particular facets of financial development are taken into account. Moreover, the impact is also influenced by the countries' wealth levels, in which countries with high average incomes have financial development that has an impact on reducing environmental pollution and the opposite result when viewed. considered in low-middle-income countries. Finally, we offer some policy recommendations regarding financial development to enhance its efficacy in maintaining environmental quality.

show abstract

Section: Introductionmentioning

confidence: 99%

Influence of Financial Development on Environmental Quality: Research Results from Developing Countries

Nguyen,

Le,

Ngo

et al. 2024

IJEEP

View full text Add to dashboard Cite

show abstract

Nexus between Unemployment, Income Inequality, Political Stability, and Economic Growth: An Empirical Study of the Nepalese Economy

Arjun Kumar,

Prem Bahadur,

Ganesh

2024

Valahian Journal of Economic Studies

View full text Add to dashboard Cite

This study aims to investigate the influence of political stability, unemployment, and income inequality on the economic growth of Nepal while also exploring the reciprocal impact of economic growth, unemployment, and political stability on income inequality within the country. It only uses secondary data from various World Bank reports and Nepal's economic surveys. It only covers 32 data points spanning from 1991 to 2022. The descriptive and exploratory research designs are used in this study. Simple statistical tools like correlation analysis, Unstandardized and standardized regression analysis, analysis of variance (ANOVA), residual statistics, histogram, and scatterplot for residual analysis are used in this analysis. Unemployment has negative and political stability positively impacts economic growth in Nepal. One percent increase in unemployment results in a 1.920 percent decrease in economic growth. Likewise, one percent increase in the political stability index results in a 0.804 percent increase in economic growth in Nepal. Unemployment hurts more on economic growth than income inequality in Nepal. Unemployment, political stability, and GDP growth are individually and jointly affected by income inequality in the nation. Political stability and economic growth decrease income inequality, but unemployment increases income inequality in the Nepalese economy. One unit increase in the political stability index and economic growth results in -4.356 and -0.117 unit decrease in income inequality in Nepal. The political stability index has a multiplier effect in decreasing income inequality. Unemployment causes income inequality. One unit increase in unemployment results in a 1.121 unit increase in income inequality. Unemployment has a multiplier effect on income determination in Nepal. About 39.7 percent variation in economic growth is determined by political stability, unemployment, and income inequality, but 46.7 percent in income inequality is determined by unemployment, economic growth, and political stability. Policymakers should consider a holistic approach that addresses income inequality, unemployment, and political stability to foster sustainable and inclusive economic growth. The abstract is not a substitute for the introduction.

show abstract

Determinants of Income Inequality in South Africa: A Vector Error Correction Model Approach

Seabela,

Ogujiuba,

Eggink

2024

Economies

View full text Add to dashboard Cite

The issue of income disparity has long plagued South Africa because of the political environment that existed before the country’s 1994 democratic transition. Based on the widely used Gini index, which gauges global inequality, the nation routinely has some of the highest rates of income disparity in the world. Income inequality in South Africa keeps rising even after a number of frameworks and policies have been put in place, which has a big influence on society. Thus, it is essential to comprehend the causes of income disparity and put suitable policies in place to remedy it. The purpose of this study is to look into the relationship between South Africa’s income disparity and its determinants. Using the Vector Error Correction Model (VECM) approach, this study empirically examines the effects of government spending on social grants, gross savings, population growth, and economic growth on income inequality from 1975 to 2017. Data on the Gini index are sourced from the Standardized World Income Inequality Database (SWIID). Findings reveal a statistically significant negative correlation between government spending on social grants and income inequality. Moreover, income inequality demonstrates a negative relationship with both gross savings and economic growth. However, population growth exhibits a positive correlation with income inequality. This study highlights the significance of implementing a comprehensive strategy to address income inequality in South Africa. This strategy should involve augmenting government expenditure on social grants, cultivating a savings culture within households, and enacting policies that incentivize job creation, particularly in areas with rapid population growth. In addition to making a substantial contribution to the body of evidence already available on income disparity, this study offers insightful information to policymakers working to improve the socioeconomic climate in South Africa.

show abstract

Measuring the Effect of Income Inequality, Financial Inclusion, Investment, and Unemployment, on Economic Growth in Africa: A Moderating Role of Digital Financial Technology

Cited by 3 publications

References 95 publications

Influence of Financial Development on Environmental Quality: Research Results from Developing Countries

Influence of Financial Development on Environmental Quality: Research Results from Developing Countries

Nexus between Unemployment, Income Inequality, Political Stability, and Economic Growth: An Empirical Study of the Nepalese Economy

Determinants of Income Inequality in South Africa: A Vector Error Correction Model Approach

Contact Info

Product

Resources

About