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Gross Domestic Savings, Household Consumption, and Inequality in Africa: A Panel Analysis
Abstract
The chapter analyses gross domestic saving, household consumption, and inequality in African countries. The study covers the period from 1989 to 2019, a length of 31 years, for 24 Africa nations from all the regions of the continent. The main econometric methods of analysis employed for the work is panel cointegration analysis. The variables used for the study to explain both gross domestic savings and household consumption trajectories in Africa include income, inequality, financial development, and government final consumption expenditure. The results show that inequality has negative effects on gross domestic saving but positive effects on household consumption in countries across Africa.
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