Bi-Regional Analysis of the Effect of Urbanisation on Income Inequality in Asia & Sub-Saharan Africa Using Panel Estimations and Dynamic Panel Generalized Method of Moments Techniques, 1990-2020
Aimed to ascertain if there is a statistically significant difference in linearity or directional effect of urbanisation on income inequality in Asia and Sub-Saharan Africa. To explore the research question it uses panel estimations to introduce into the literature a bi-regional analysis of the relationship between urbanisation and income inequality over the period 1990-2020. This was conducted using panel estimations and dynamic panel Generalized Method of Moments techniques. The findings show that Asia and Sub-Saharan Africa differ in terms of the directional effect of urbanisation on income inequality, as well as linearity of the relationship. First estimates for Asia indicate a statistically significant inverse-U shaped relationship between urbanisation and income inequality, with an implied turning point at 23% urbanisation. Whereas estimates for Sub-Saharan Africa indicate a statistically significant negative linear relationship between urbanisation and income inequality, with a larger statistically significant negative linear effect in the long run. Future urbanisation in both regions should reduce income inequality on aggregate, ceteris paribus, as 46/48 Asia nations have passed the implied turning point as of 2020.
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- Single study
- Afghanistan, Angola, Armenia, Azerbaijan, Bahrain, Bangladesh, Benin, Bhutan, Botswana, Brunei, Burkina Faso, Burundi, Cambodia, Cameroon, Cape Verde, Central African Republic, Chad, China, Comoros, Cote d'Ivorie, Cyprus, Democratic Republic of the Congo (formerly Zaire), Egypt, Equatorial Guinea, Eritrea, Eswatini (Swaziland), Ethiopia, Gabon, Gambia, Georgia, Ghana, Guinea, Guinea Bissau, India, Indonesia, Iran, Iraq, Israel, Japan, Jordan, Kazakhstan, Kenya, Kuwait, Kyrgz Republic (Kyrgyzstan), Laos, Lebanon, Lesotho, Liberia, Madagascar, Malawi, Malaysia, Maldives, Mali, Mauritania, Mauritius, Mongolia, Mozambique, Myanmar (Burma), Namibia, Nepal, Niger, Nigeria, Oman, Pakistan, Republic of Congo, Russia, Rwanda, Sao Tome and Principe, Saudi Arabia, Senegal, Seychelles, Sierra Leone, Singapore, Somalia, South Africa, South Korea, South Sudan, Sri Lanka, Sudan, Syria, Tajikstan, Tanzania, Thailand, Timor Leste, Togo, Turkey, Turkmenistan, Uganda, United Arab Emirates, Uzbekistan, Vietnam, Yemen, Zambia, and Zimbabwe
- Bi-Regional Analysis of the Effect of Urbanisation on Income Inequality in Asia & Sub-Saharan Africa Using Panel Estimations and Dynamic Panel Generalized Method of Moments Techniques, 1990-2020
- Single study