European Journal of Business Science and Technology 2021, 7(2):223-237 | DOI: 10.11118/ejobsat.2021.011

What Affects Income in Sub-Saharan Africa?

Raymond Kofi Adjei1, Veronika Kajurová1
1 Mendel University in Brno, Czech Republic

This paper closely examines how selected macroeconomic variables affect income in Sub-Saharan Africa (SSA). The study employs a more recent dataset and uses fixed and random effects models to characterise the nature and direction of impact evidenced from the data. The analysis further incorporates a monetary policy element by introducing money market interest rate and examining its effects. In general, the paper reveals that income in SSA is significantly affected by trade. Additionally, money market interest rate is found to have no major impact on income as may be perceived, suggesting that this aspect of monetary policy has not played a major role in affecting income levels in SSA. The findings of this study can serve as a guide for policy makers within the region when considering policy actions in relation to income.

Keywords: income, international trade, sub-Saharan Africa, money market interest rate
JEL classification: B27, E01, E43, F14, F35

Received: May 24, 2021; Revised: October 3, 2021; Accepted: October 4, 2021; Published: December 21, 2021  Show citation

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Kofi Adjei, R., & Kajurová, V. (2021). What Affects Income in Sub-Saharan Africa? European Journal of Business Science and Technology, 7(2), 223-237. doi: 10.11118/ejobsat.2021.011
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