Bridging Africa’s income inequality gap: How relevant is China’s outward FDI to Africa?

K., Ofori Isaac; T., Dossou Marcel A.; A., Asongu Simplice; K., Armah Mark

doi:10.1016/j.ecosys.2022.101055

Cited by 20 publications

(10 citation statements)

References 72 publications

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“…This reflects the challenges they face in developing robust governance frameworks, hindered by limited resources, weak institutions, political instability, and social factors. Theoretical frameworks emphasizing historical legacies, state capacity, and external factors help understand these obstacles (Acheampong et al, 2022; Ofori et al, 2022). Historical legacies shape the current governance context, while state capacity plays a crucial role in determining the effectiveness of governance institutions.…”

Section: Discussionmentioning

confidence: 99%

Falling behind: Evaluating projected sustainable development goals progress across varied income countries

Soto

2023

Sustainable Development

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The primary aim of this work is to prognosticate and evaluate the trajectory pertaining to the realization of the 17 Sustainable Development Goals (SDGs) contingent upon the income levels prevalent within a diverse cohort of 349 countries. Employing Holt's forecast method, we classified SDGs in three bundles, namely higher needs, basic needs, and governance. Our analysis concludes that nations endowed with greater income levels exhibit a discernible amelioration in their SDGs indices, while countries with low and lower middle‐income strata manifest an alarming worsening of their trends. These empirical findings bear significant implications for policymakers ensconced within nations committed to the achievement of these goals, supranational institutions, non‐governmental organizations (NGOs), and scholars. The widening developmental gap urges for greater institutional attention from the international community before the situation further deteriorates. Tailored policies and strategic initiatives might effectively address the idiosyncratic challenges faced by these nations. Concurrently, fostering international cooperation and collaborative endeavors stand as potent prerequisites, substantively bolstering the concerted pursuit of sustainable development goals and enduring sustainability for the entirety of humanity.

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Section: Discussionmentioning

confidence: 99%

Falling behind: Evaluating projected sustainable development goals progress across varied income countries

Soto

2023

Sustainable Development

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“…Figu re 2 shows the proposed path for hypothesis 2. The mixed effects of trade drive d omestic II, and BT flows impact its immigration (Ofori, Dossou, Asongu, & Armah, 2023). Multiple factors lead to personnel mobil ity from a bilateral perspective.…”

Section: Analysis Of the Impact Measurement Of Bto And Domestic IImentioning

confidence: 99%

Impact analysis of bilateral trade openness and income inequality based on the system GMM method: A case study of transnational dynamic panel data

Ying,

Farouk,

Lin

2024

IJAEFA

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To analyze the impact of bilateral trade openness on income inequality, the study selected 16 countries with the highest global import and export trade rankings as research subjects, combined with cross-border dynamic panel data from 2005 to 2020, and used the Gaussian Mixture Model (GMM) to analyze the dynamic impact of natural and policy factors on domestic income inequality in the process of deepening bilateral trade openness. Empirical research has found that the policy-oriented expansion of openness in 16 countries has an inhibitory effect on domestic income inequality, while natural openness is influenced, to varying degrees, by different trading partners. High-quality education and sound infrastructure can help regulate income inequality. The results indicate that policy-based openness between 16 countries and those with weaker technological output, i.e., patent quantity, education level, i.e., higher education, and immigration, can suppress domestic income inequality, which is consistent with the expected hypothesis of the impact mechanism. The results indicate that in-depth research on the relationship between trade openness and income inequality can provide a basis for policymakers to adjust trade policies and provide recommendations to reduce income inequality. Meanwhile, the results and methods of this study can provide references for other scholars and promote research progress in related fields.

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“…The study incorporates six control variables grounded in existing literature [5,20,36,45,56,57,60,62], African attributes, and data accessibility. Higher population growth (measured with popular growth annual %) can lead to income inequality [20,62], given that Africa is characterised by higher population growth, this study incorporates this variable to see its impact.…”

Section: Datamentioning

confidence: 99%

“…Higher population growth (measured with popular growth annual %) can lead to income inequality [20,62], given that Africa is characterised by higher population growth, this study incorporates this variable to see its impact. Trade openness [using net trade as a percentage of Gross Domestic Product (GDP)] was considered since it has some level of impact on income inequality [5,45]. Evaluating Africa's trade openness in reducing income inequality is crucial.…”

Section: Datamentioning

confidence: 99%

“…In 2022, 431 million Africans lived in extreme poverty, exceeding past levels, with a $1.90 per day threshold [3]. Furthermore, despite the robust economic growth in numerous African nations, the expected progress in human development and poverty reduction indicators has not materialised as anticipated [4,5]. For instance, from 2001 to 2010, six out of the top ten fastest-growing economies worldwide were from Africa [6].…”

Section: Introductionmentioning

confidence: 99%

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Foreign bank presence and income inequality in Africa: What role does economic freedom play?

Iddrisu

2024

Futur Bus J

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This study contributes to income equality (IE) literature by examining four important issues. First, the study examines the effects of foreign bank presence (FBP) on IE. Second, the paper identifies the minimum threshold level of FBP which can lead to IE. Third, the effect of economic freedom on IE was investigated. Fourth, the paper determines whether economic freedom interacts with FBP to minimise IE. The findings are based on macro data for 33 African countries from 1995 to 2020. The findings from the two-stage system generalised method of moment indicate that unconditionally, FBP reduces income inequality. Also, results from the threshold effect reveal that whilst FBP reduces income inequality, if it exceeds 52%, it may contribute to it. Additionally, the study reveals that economic freedom dampens IIE. Furthermore, economic freedom conditions FBP to reduce IE. Based on these findings, policymakers are advised to exercise caution in attracting foreign banks and to promote local financial institutions. Policymakers are also advised to implement policies to promote economic freedom.

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Bridging Africa’s income inequality gap: How relevant is China’s outward FDI to Africa?

Cited by 20 publications

References 72 publications

Falling behind: Evaluating projected sustainable development goals progress across varied income countries

Falling behind: Evaluating projected sustainable development goals progress across varied income countries

Impact analysis of bilateral trade openness and income inequality based on the system GMM method: A case study of transnational dynamic panel data

Foreign bank presence and income inequality in Africa: What role does economic freedom play?

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