Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/298223 
Year of Publication: 
2023
Series/Report no.: 
AGDI Working Paper No. WP/23/030
Publisher: 
African Governance and Development Institute (AGDI), Yaoundé
Abstract: 
The present study investigates the incidence of financial institutions' dynamics of depth and access in the effect of income inequality on poverty and the severity of poverty in 42 Sub-Saharan African countries from 1980 to 2019. The Gini index is used to measure income inequality while poverty is measured as the poverty headcount ratio, and the severity of poverty is generated as the squared of the poverty gap index. An interactive quantile regression approach is used as an empirical strategy. Income inequality unconditionally increases poverty dynamics while the financial institutions' depth and access mitigate the adverse effects of income inequality on poverty dynamics. Financial institutions' policy thresholds or minimum financial institutions levels needed to completely dampen the adverse effects of income inequality on poverty dynamics are provided. The findings are contingent on existing levels of poverty, poverty measurement and proxies for financial institutions. Policy implications are discussed.
Subjects: 
financial development
poverty alleviation
Africa
JEL: 
G20
I10
I20
I30
O10
Document Type: 
Working Paper

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