Globalization and Income Inequality; A Panel Data Analysis of 37 Developing Countries in Africa

James Fasakin, University of Ibadan
Toba S. Olasehinde, University of Ibadan

Abstract Shortage of economic facts on the effects of globalization and income inequality in Africa has made it difficult for effective economic policy response to the problem of inequalities in the continent. Against this backdrop, this paper will examine the nexus between Globalization and Income Inequality in Africa over the period 44years (1970-2014. Data from the Standardized World Income Inequality Data (SWIID) of (Soltz, 2016), KOF globalization index and variables from World Development Indicators (WDI) will be analyzed through Ordinary Least Square (OLS) and Random effect model for a panel of 37 developing countries in Africa. The paper is expected to validate the Kuznet’s U hypothesis of relationship between income level and income inequality in Africa, and give more insight on the relationship between globalization and income inequality among African countries Keyword: Globalization, Income Inequality, Gini Coefficient, Africa JEL: C23, F62, O55