{"title":"Income inequality persistence in African countries: financial regulation and military expenditure roles","authors":"João Jungo, Mara Madaleno, Anabela Botelho","doi":"10.1108/ijse-04-2023-0287","DOIUrl":null,"url":null,"abstract":"<h3>Purpose</h3>\n<p>Evidence shows that African countries are confronted with high levels of income inequality. Therefore, it is relevant to approach and analyze the factors contributing to these severe inequality cases. This paper addresses the issue by focusing on the role of financial regulation and military spending.</p><!--/ Abstract__block -->\n<h3>Design/methodology/approach</h3>\n<p>We used a sample of 30 African countries and a recent period (2009–2020), employing various instrumental variable estimation techniques to control for endogeneity.</p><!--/ Abstract__block -->\n<h3>Findings</h3>\n<p>The results confirm that economic growth aggravates income inequality due to high corruption and political instability. Results confirm that the increase in military spending increases inequality and that financial regulation weakens financial inclusion and also increases income inequality.</p><!--/ Abstract__block -->\n<h3>Research limitations/implications</h3>\n<p>The study shows the need for greater control of corruption and the promotion of political stability so that economic growth and financial inclusion can effectively reduce income inequality, as well as the need for a better balance in the drafting of financial regulations and the preparation of military expenditure to safeguard other policy objectives.</p><!--/ Abstract__block -->\n<h3>Originality/value</h3>\n<p>The present study contributes to scarce financial, economic, and social literature considering the role of financial regulation and military spending in the persistence of income inequality in African countries. Previous studies disregarded this fact.</p><!--/ Abstract__block -->\n<h3>Peer review</h3>\n<p>The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-04-2023-0287</p><!--/ Abstract__block -->","PeriodicalId":47714,"journal":{"name":"INTERNATIONAL JOURNAL OF SOCIAL ECONOMICS","volume":"22 1","pages":""},"PeriodicalIF":1.9000,"publicationDate":"2024-08-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"INTERNATIONAL JOURNAL OF SOCIAL ECONOMICS","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/ijse-04-2023-0287","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
Purpose
Evidence shows that African countries are confronted with high levels of income inequality. Therefore, it is relevant to approach and analyze the factors contributing to these severe inequality cases. This paper addresses the issue by focusing on the role of financial regulation and military spending.
Design/methodology/approach
We used a sample of 30 African countries and a recent period (2009–2020), employing various instrumental variable estimation techniques to control for endogeneity.
Findings
The results confirm that economic growth aggravates income inequality due to high corruption and political instability. Results confirm that the increase in military spending increases inequality and that financial regulation weakens financial inclusion and also increases income inequality.
Research limitations/implications
The study shows the need for greater control of corruption and the promotion of political stability so that economic growth and financial inclusion can effectively reduce income inequality, as well as the need for a better balance in the drafting of financial regulations and the preparation of military expenditure to safeguard other policy objectives.
Originality/value
The present study contributes to scarce financial, economic, and social literature considering the role of financial regulation and military spending in the persistence of income inequality in African countries. Previous studies disregarded this fact.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-04-2023-0287
期刊介绍：
The International Journal of Social Economics publishes original and peer-reviewed theoretical and empirical research in the field of social economics. Its focus is on the examination and analysis of the interaction between economic activity, individuals and communities. Social economics focuses on the relationship between social action and economies, and examines how social and ethical norms influence the behaviour of economic agents. It is inescapably normative and focuses on needs, rather than wants or preferences, and considers the wellbeing of individuals in communities: it accepts the possibility of a common good rather than conceiving of communities as merely aggregates of individual preferences and the problems of economics as coordinating those preferences. Therefore, contributions are invited which analyse and discuss well-being, welfare, the nature of the good society, governance and social policy, social and economic justice, social and individual economic motivation, and the associated normative and ethical implications of these as they express themselves in, for example, issues concerning the environment, labour and work, education, the role of families and women, inequality and poverty, health and human development.
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