When does public debt hurt inequality in Africa
Bibliographic Data
| ID | 21515764 |
|---|---|
| Authors | Francis Kwaw Andoh (0000-0003-3453-1996, University of Cape Coast), Emmanuel Attobrah (0000-0003-0162-1047, University of Cape Coast), Alexander Opoku (0009-0008-7268-0080, University of Cape Coast), Mark Kojo Armah (0000-0001-7210-4413, University of Cape Coast), Isaac Dasmani (University of Cape Coast) |
| Year | 2023 |
| Volume | 50 |
| Issue | 11 |
| Pages | 1501-1520 |
| Publication date | 2023-11-17 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | International Journal of Social Economics (JOURNAL) |
| Journal identifiers | ISSN: 0306-8293 • E-ISSN: 1758-6712 |
| Publisher | Emerald (PUBLISHER) |
| DOI | 10.1108/ijse-06-2022-0435 |
| OpenAlex | W4376875033 |
| Language | EN |
| Citations received | 1 |
| References cited | 42 |
Purpose The question of what level of public debt can increase inequality has become crucial in Africa. In this study, the authors examine the effect of public debt on inequality in Africa and estimate the debt-inequality threshold. The authors then examine the moderating role of tax burdens and corruption in the relationship between public debt and inequality. Design/methodology/approach Using data from the period 2005 to 2019 in 38 African countries, the generalized method of moment and the dynamic panel threshold regression techniques were employed to achieve the purpose of the study. Findings The results reveal that a 1% increase in public debt leads to a rise in inequality by about 0.17%. However, the effects doubles when the public debt ratio hits 57.47%. Tax burden worses the effect of public debt by about 2.9 percentage points, while control of corruption reduces debt effect on inequality by 61 percentage points. Research limitations/implications Owing to data availability, the study period was restricted to 2005 to 2019. Moreover, the study could not consider the disagreggation of inequality into different income groups due to pausty of data. While this could narrow the scope of the study, the results provide an important insight for policy makers. Originality/value This contributes to the scant literature on the effect of public debt on income inequality in African countries. This study is a novelty because its provides the level of public debt which worsens inequality in Africa, as well as the moderating effects of tax burden and corruption control. Peer review The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-08-2022-0581
Debt · Demographic economics · Econometrics · Economic inequality · Economics · External debt · Income inequality metrics · Inequality · Internal debt · Macroeconomics · Monetary economics · Panel data · Public economics · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Income, Poverty, and Inequality
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| Citations per year | 1 |
|---|---|
| Citation span | 2025 - 2025 (1) |
| Highly cited | No |