Munich Personal RePEc Archive

Effect of Trade on Income Inequality in sub-Saharan Africa: A note

Ogundari, Kolawole (2021): Effect of Trade on Income Inequality in sub-Saharan Africa: A note.

[img]
Preview
PDF
MPRA_paper_110200.pdf

Download (278kB) | Preview

Abstract

The paper examines the effect of trade on income inequality in sub-Saharan Africa (SSA) countries. We employ a balanced panel of 11 countries covering 1980-2008 and use a fractional regression model for panel data as a method of estimation. The empirical results show that trade decreases income inequality, which might be an indication that our findings support the Stolper-Samuelson (SS) theorem in the Heckscher-Ohlin (HO) model in SSA. We also found evidence that lack of democracy (i.e., the existence of autocracy) increases income inequality, while higher educational attainment decreases income inequality in the study

Logo of the University Library LMU Munich
MPRA is a RePEc service hosted by
the University Library LMU Munich in Germany.