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Hisako Kai and Shigeyuki Hamori
''Globalization, financial depth, and inequality in Sub-Saharan Africa ''
( 2009, Vol. 29 No.3 )
This paper examines the relationship between globalization, financial deepening, and inequality in sub-Saharan Africa between 1980 and 2002. We provide the first detailed econometric analysis in this regard covering the entire sub-Saharan African region; such an analysis has hardly been conducted owing to the lack of relevant data. We find that while globalization deteriorates inequality, its disequalizing effect depends on the level of development of the country. Further, this paper confirms that globalization deteriorates the equalizing effect of financial depth, although the latter helps to reduce inequality. We conclude that in sub-Saharan Africa, as a result of globalization, the rich have become richer and the poor have become poorer.
Keywords: Globalization, Financial Depth, Inequality, Sub-Saharan Africa
JEL: F4 - Macroeconomic Aspects of International Trade and Finance: General
O1 - Economic Development: General
Manuscript Received : Aug 10 2009 Manuscript Accepted : Aug 18 2009

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