Income Distribution and Growth Process in Sub-Saharan Africa

Sub-Saharan Africa (SSA) is one of the regions of the world that exhibits high disparities in income distribution. Income inequality has remained ubiquitous and pronounced across countries in the region, with Sub-Saharan Africa ranking closely behind Latin America as the second most unequal region globally. This paper specifically investigates the effect of disparities in income dispersion on economic growth in SSA countries from 1995-2015 using the Blundell-Bond panel estimation procedure. Results from our analysis generally indicate that income inequality has a consistent, direct, and significant noxious effect on growth, implying that income inequality stifles growth in the region.