TITLE:
Financial Development and Income Inequality: Evidence from African Countries in the Franc Zone
AUTHORS:
Louis Bernard Tchekoumi, Christèle Awounang
KEYWORDS:
Financial Development, Income Inequality
JOURNAL NAME:
Modern Economy,
Vol.10 No.1,
January
11,
2019
ABSTRACT: The aim of this article is to evaluate the effect of
financial development on income inequality in a sample of African countries of
the Franc Zone. Using data from Worldwide Governance indicators, UNESCO, COBAC,
the Banking Commission of West African States and the World Bank, based on
cylindrical dynamic panel whose instrumentalisation and stationarity of
variables enabled us to use GMM in system, the results show that financial
development through its components which are credit to the private sector,
network development as well as the monetary mass significantly reduce income
inequality among households. This result is robust by alternative or dual use
of the components as well as when several control variables are integrated.