Open AccessDeconstructing the Impact of Entrepreneurship on Income Inequality in Sub-Saharan Africa Countries
Author(s) -
Jimoh Sina Ogede
Publication year - 2020
Publication title -
economics and business
Language(s) - English
Resource type - Journals
eISSN - 2256-0394
pISSN - 2256-0386
DOI - 10.2478/eb-2020-0018
Subject(s) - entrepreneurship , economics , nexus (standard) , economic inequality , inequality , panel data , human capital , demographic economics , development economics , econometrics , economic growth , mathematical analysis , mathematics , finance , computer science , embedded system
The study examines the impacts of entrepreneurship on income inequality in a panel of 29 Sub-Saharan African countries spanning from 2004 to 2020. The paper employs a dynamic heterogeneous panel approach to differentiate between long-run and short-run impacts of entrepreneurship on income inequality. The findings establish a robust and direct nexus between entrepreneurial activities and income disparity. The results of the two entrepreneurial indicators are stable. Besides, the coefficient of the human capital is positive in the regression and statistically significant at a 5 percent significance level. The proxies for macroeconomic factors exhibit diverse signs and impact, which suggest a policy stimulus aimed at refining macroeconomic situations and also ignite prospects for households to increase their incomes.