Effect of Financial Inclusion on Income Inequality in Sub-Saharan Africa

Main Article Content

Kipoh Mpele Esther

Abstract

Aims: To analyze financial inclusion as a channel to alleviate inequality in order to provide insight into the edifice of inequality reduction.

Study Design:  Dynamic panel study.

Place and Duration of Study: Sub-Saharan African countries over the period 2004-2018.

Methodology: Using the generalized method of moments (GMM) on a sample of 27 Sub-Saharan African countries.

Results: The results show that the estimated financial inclusion index has a negative effect on income inequality. Therefore, the depth of commercial bank branches and the effective use of bank accounts reduce income inequality.

Conclusion: Increase financial inclusion as well as the development of financial infrastructure and the provision of specific low-cost services tailored to low-income households.

Keywords:
Financial inclusion, financial inclusion index, GMM, income inequality.

Article Details

How to Cite
Esther, K. M. (2020). Effect of Financial Inclusion on Income Inequality in Sub-Saharan Africa. South Asian Journal of Social Studies and Economics, 5(4), 1-15. https://doi.org/10.9734/sajsse/2019/v5i430154
Section
Short Research Article

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