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Effect of Income Inequality on Economic Growth in Selected West Africa Countries: An Empirical Analysis

Yıl 2019, Cilt: 1 Sayı: 3, 240 - 257, 08.07.2019

Öz

The paper empirically investigates the effect of income inequality on economic growth in the selected Western African countries for the period of 1969-2016 by using panel data analysis. The results of panel data method indicates that poverty has positive and statistically significant effect; openness has a negative, and also significant effect on economic growth. On the other hand, inequality and human capita have negative effect on economic growth and slightly statistically significant.

The results of this study show that the policy makers should focus on reinvestment in human capital, poverty reduction, land reforms, and infrastructure development as the dynamics of economic growth for these countries. 


Kaynakça

  • Alesina, A. and P. Roberto, 1993.The political economics of growth: A critical survey of the recent literature.The World Bank Economic Review, 8(3): 351-371.
  • Alesina, A. and D. Rodrick, 1994.Distributive politics and economics growth, Review of Economic Studies, 58(2): 277-297.
  • Anyanwu, J.C. and H.E. Oaikhenan, 1995. Modern Macroeconomics: Theory and Applications in Nigeria. Joanie educational publisher Ltd, Onitsha, Nigeria.
  • Auten, G. and R. Carroll, 1999.The effects of income taxes on household income.Review of Economics and Statistics,81(4): 681-93.
  • Clark, J. R. and R. A. Lawson, 2008.The impact of economic growth, tax policy and economic freedom on income inequality. The Journal of Private Enterprise 24(1) 23-31.
  • Dalt, G. and M.Ravaflion, 1992.Growth and distribution component of changes in poverty measures: A decomposition with application to Brazil and India in the 1980s. Journal of Development Economics.
  • Deininger, K. and L. Squire, 1996.Measuring income inequality; A new Data base.World Bank Economic Review Vol. 10, No 3: 565-91.
  • Deininger, K. and L. Squire, 1998.New ways of looking at old issues: inequality and growth. Journal of Development Economics,57:259-87.
  • Dollar, D. andA.Kraay, 2001.Trade, growth and poverty. Finance and Development, 38: 16-19 Dollar,
  • D. and A. Kraay, 2001. Growth is good for the poor. World Bank Research Working Paper.
  • Domar, E., 1946. Capital expansion, rate of growth and employment. Econometrics,14.
  • Ekpo, A. H., 2005. Openness and economic performance in Nigeria, Selected Seminar Papers. Development Economics, University of Uyo.
  • Forbes, K. J., 2000. A reassessment of the relationship between inequality and growth. American Economic Review, 90: 869-97.
  • Fosu, A. K., 2010. Growth, inequality and poverty reduction in developing countries: recent global evidence. OECD Development Centre Background Paper.
  • Frankel, J. and D. Romer, 1999.Does trade cause growth? American Economic Review, 5:5-32.
  • Galor, O. andJ.Zeira, 1993.Income distribution and macroeconomics, Review of Economic Studies, 60: 35-52.
  • Garbis, 1., 2005. Inequality, Poverty and Growth: Cross Country Evidence. IMF Working paper No. 28.
  • Gujarati, N. D. and S. Sangeetha, 2007.BasicEconometrics.New Delhi, Tata McGraw Hill Publishing Company Limited.
  • Gupta, D. K., 1990. The economics of political violence: The effects of political instability on economic growth. Praeger, New York.
  • Hall, A., 2005.Generalized method of moments, Oxford University Press.
  • Hall, J., 2007.Linking economic development and poverty: the role of innovation and innovation capacity in the south. University of Kentucky Centre for Poverty Research (UKCPR), Discussion Paper Series DP 2007-01.
  • Kamila M.Y. and B.K. Semih, 2011.Income inequality and economic growth: enhancing or retarding impact?14th International Student Conference on Economics. Kuznets, S., 1955.Economic growth and income inequality. The American Economic Review XLV(1).
  • Li, H. and H. Zou, 2000.Corruption, income distribution and growth. Economics and Politics 12(2): 82-55.
  • Li, H., L. Squire, and H. Zou, 1998. Explaining international and inter temporal variations in income inequality. The Economic Journal 108:26-43.
  • Litchfield, J. A., 1999. Inequality methods and tools, text for World Bank’s site on inequality, poverty and socio-economic performance.
  • Liu, L. and Q. Wanshun, 2006.The interaction between income distribution and economic growth”; Accessed from www.file///c:users/hp/Desktop/inequality-Growth-.html on 22/12/2013.
  • Ncube, M., J. Anyanwu, and K.Hauskin, 2013. Inequality, economic growth and poverty in the middle east and north Africa (MENA).African Development Bank Group, Working Paper Series 195.
  • Oguns, A., 2004. Turkiye’ de Ekonomik Buyume ve GelirDagilimi, Iv. IktisatKongresi, 12 mir.
  • Peet, R., 1975. Inequality and poverty: A marxist–geographic theory (online) Available from www. mrkaminski.weebly.com/./inequality_and_poverty_a_marxist_geograp.Accessed: 26 January, 2014.
  • Perotti R., 1996. Income distribution, politics and economic growth; Quarterly Journal of Economics 109.
  • Rodriguez, F., 2000.Inequality, economic growth and economic performance: a background note for the world development report, Department of Economics, University of Maryland.
  • Smith, D., 2001. International evidence on how income inequality and credit market imperfections affect private saving rates. Journal of Development Economics64:103-127.
  • Solow, R. M., 1962. Technical progress, capital formation and economic growth. American Economic Review 25.
  • Tabassum, A., 2005. Economic growth and income inequality relationship: role of credit market imperfection. Quaid-Azam, University of Islamabad.
  • World Development Indicators (2011), World Bank.www.databank.worldbank.org/data/Databases.aspx Accessed: 23/2/2014.www.wikipedia.com. Accessed: 13/11/2013.
  • Yin, H. L. G. and H. Zou, 2006.Income inequality and economic growth: the Kuznets curve revisited. Empirical Economics, 1(2): 196 – 206.
  • Zouheir, A. and M. S. Imen, 2012.Economic growth and income inequality, empirical evidence from north African countries. Asian Economic and Financial Review 2(1): 142-154.

Effect of Income Inequality on Economic Growth in Selected West Africa Countries: An Empirical Analysis

Yıl 2019, Cilt: 1 Sayı: 3, 240 - 257, 08.07.2019

Öz

The paper empirically investigates the effect of income inequality on economic growth in the selected Western African countries for the period of 1969-2016 by using panel data analysis. The results of panel data method indicates that poverty has positive and statistically significant effect; openness has a negative, and also significant effect on economic growth. On the other hand, inequality and human capita have negative effect on economic growth and slightly statistically significant.

The results of this study show that the policy makers should focus on reinvestment in human capital, poverty reduction, land reforms, and infrastructure development as the dynamics of economic growth for these countries. 


Kaynakça

  • Alesina, A. and P. Roberto, 1993.The political economics of growth: A critical survey of the recent literature.The World Bank Economic Review, 8(3): 351-371.
  • Alesina, A. and D. Rodrick, 1994.Distributive politics and economics growth, Review of Economic Studies, 58(2): 277-297.
  • Anyanwu, J.C. and H.E. Oaikhenan, 1995. Modern Macroeconomics: Theory and Applications in Nigeria. Joanie educational publisher Ltd, Onitsha, Nigeria.
  • Auten, G. and R. Carroll, 1999.The effects of income taxes on household income.Review of Economics and Statistics,81(4): 681-93.
  • Clark, J. R. and R. A. Lawson, 2008.The impact of economic growth, tax policy and economic freedom on income inequality. The Journal of Private Enterprise 24(1) 23-31.
  • Dalt, G. and M.Ravaflion, 1992.Growth and distribution component of changes in poverty measures: A decomposition with application to Brazil and India in the 1980s. Journal of Development Economics.
  • Deininger, K. and L. Squire, 1996.Measuring income inequality; A new Data base.World Bank Economic Review Vol. 10, No 3: 565-91.
  • Deininger, K. and L. Squire, 1998.New ways of looking at old issues: inequality and growth. Journal of Development Economics,57:259-87.
  • Dollar, D. andA.Kraay, 2001.Trade, growth and poverty. Finance and Development, 38: 16-19 Dollar,
  • D. and A. Kraay, 2001. Growth is good for the poor. World Bank Research Working Paper.
  • Domar, E., 1946. Capital expansion, rate of growth and employment. Econometrics,14.
  • Ekpo, A. H., 2005. Openness and economic performance in Nigeria, Selected Seminar Papers. Development Economics, University of Uyo.
  • Forbes, K. J., 2000. A reassessment of the relationship between inequality and growth. American Economic Review, 90: 869-97.
  • Fosu, A. K., 2010. Growth, inequality and poverty reduction in developing countries: recent global evidence. OECD Development Centre Background Paper.
  • Frankel, J. and D. Romer, 1999.Does trade cause growth? American Economic Review, 5:5-32.
  • Galor, O. andJ.Zeira, 1993.Income distribution and macroeconomics, Review of Economic Studies, 60: 35-52.
  • Garbis, 1., 2005. Inequality, Poverty and Growth: Cross Country Evidence. IMF Working paper No. 28.
  • Gujarati, N. D. and S. Sangeetha, 2007.BasicEconometrics.New Delhi, Tata McGraw Hill Publishing Company Limited.
  • Gupta, D. K., 1990. The economics of political violence: The effects of political instability on economic growth. Praeger, New York.
  • Hall, A., 2005.Generalized method of moments, Oxford University Press.
  • Hall, J., 2007.Linking economic development and poverty: the role of innovation and innovation capacity in the south. University of Kentucky Centre for Poverty Research (UKCPR), Discussion Paper Series DP 2007-01.
  • Kamila M.Y. and B.K. Semih, 2011.Income inequality and economic growth: enhancing or retarding impact?14th International Student Conference on Economics. Kuznets, S., 1955.Economic growth and income inequality. The American Economic Review XLV(1).
  • Li, H. and H. Zou, 2000.Corruption, income distribution and growth. Economics and Politics 12(2): 82-55.
  • Li, H., L. Squire, and H. Zou, 1998. Explaining international and inter temporal variations in income inequality. The Economic Journal 108:26-43.
  • Litchfield, J. A., 1999. Inequality methods and tools, text for World Bank’s site on inequality, poverty and socio-economic performance.
  • Liu, L. and Q. Wanshun, 2006.The interaction between income distribution and economic growth”; Accessed from www.file///c:users/hp/Desktop/inequality-Growth-.html on 22/12/2013.
  • Ncube, M., J. Anyanwu, and K.Hauskin, 2013. Inequality, economic growth and poverty in the middle east and north Africa (MENA).African Development Bank Group, Working Paper Series 195.
  • Oguns, A., 2004. Turkiye’ de Ekonomik Buyume ve GelirDagilimi, Iv. IktisatKongresi, 12 mir.
  • Peet, R., 1975. Inequality and poverty: A marxist–geographic theory (online) Available from www. mrkaminski.weebly.com/./inequality_and_poverty_a_marxist_geograp.Accessed: 26 January, 2014.
  • Perotti R., 1996. Income distribution, politics and economic growth; Quarterly Journal of Economics 109.
  • Rodriguez, F., 2000.Inequality, economic growth and economic performance: a background note for the world development report, Department of Economics, University of Maryland.
  • Smith, D., 2001. International evidence on how income inequality and credit market imperfections affect private saving rates. Journal of Development Economics64:103-127.
  • Solow, R. M., 1962. Technical progress, capital formation and economic growth. American Economic Review 25.
  • Tabassum, A., 2005. Economic growth and income inequality relationship: role of credit market imperfection. Quaid-Azam, University of Islamabad.
  • World Development Indicators (2011), World Bank.www.databank.worldbank.org/data/Databases.aspx Accessed: 23/2/2014.www.wikipedia.com. Accessed: 13/11/2013.
  • Yin, H. L. G. and H. Zou, 2006.Income inequality and economic growth: the Kuznets curve revisited. Empirical Economics, 1(2): 196 – 206.
  • Zouheir, A. and M. S. Imen, 2012.Economic growth and income inequality, empirical evidence from north African countries. Asian Economic and Financial Review 2(1): 142-154.
Toplam 37 adet kaynakça vardır.

Ayrıntılar

Birincil Dil İngilizce
Konular Ekonomi
Bölüm Makaleler
Yazarlar

Ebrima K. Ceesay 0000-0002-1473-8634

Momodou Mustapha Fanneh Bu kişi benim 0000-0001-5492-4936

Joseph Bm. Tsenkwo Bu kişi benim 0000-0002-2424-1066

Yayımlanma Tarihi 8 Temmuz 2019
Kabul Tarihi 21 Nisan 2019
Yayımlandığı Sayı Yıl 2019 Cilt: 1 Sayı: 3

Kaynak Göster

APA Ceesay, E. K., Fanneh, M. M., & Tsenkwo, J. B. (2019). Effect of Income Inequality on Economic Growth in Selected West Africa Countries: An Empirical Analysis. BİLTÜRK Ekonomi Ve İlişkili Çalışmalar Dergisi, 1(3), 240-257.
AMA Ceesay EK, Fanneh MM, Tsenkwo JB. Effect of Income Inequality on Economic Growth in Selected West Africa Countries: An Empirical Analysis. BILTURK. Temmuz 2019;1(3):240-257.
Chicago Ceesay, Ebrima K., Momodou Mustapha Fanneh, ve Joseph Bm. Tsenkwo. “Effect of Income Inequality on Economic Growth in Selected West Africa Countries: An Empirical Analysis”. BİLTÜRK Ekonomi Ve İlişkili Çalışmalar Dergisi 1, sy. 3 (Temmuz 2019): 240-57.
EndNote Ceesay EK, Fanneh MM, Tsenkwo JB (01 Temmuz 2019) Effect of Income Inequality on Economic Growth in Selected West Africa Countries: An Empirical Analysis. BİLTÜRK Ekonomi ve İlişkili Çalışmalar Dergisi 1 3 240–257.
IEEE E. K. Ceesay, M. M. Fanneh, ve J. B. Tsenkwo, “Effect of Income Inequality on Economic Growth in Selected West Africa Countries: An Empirical Analysis”, BILTURK, c. 1, sy. 3, ss. 240–257, 2019.
ISNAD Ceesay, Ebrima K. vd. “Effect of Income Inequality on Economic Growth in Selected West Africa Countries: An Empirical Analysis”. BİLTÜRK Ekonomi ve İlişkili Çalışmalar Dergisi 1/3 (Temmuz 2019), 240-257.
JAMA Ceesay EK, Fanneh MM, Tsenkwo JB. Effect of Income Inequality on Economic Growth in Selected West Africa Countries: An Empirical Analysis. BILTURK. 2019;1:240–257.
MLA Ceesay, Ebrima K. vd. “Effect of Income Inequality on Economic Growth in Selected West Africa Countries: An Empirical Analysis”. BİLTÜRK Ekonomi Ve İlişkili Çalışmalar Dergisi, c. 1, sy. 3, 2019, ss. 240-57.
Vancouver Ceesay EK, Fanneh MM, Tsenkwo JB. Effect of Income Inequality on Economic Growth in Selected West Africa Countries: An Empirical Analysis. BILTURK. 2019;1(3):240-57.

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