The impact of globalization on economic inequality in Africa: A panel data study across 37 developing nations

Abstract

This study investigates the relationship between globalization and economic inequality in Africa, focusing on 37 developing nations. Using panel data from the years 2000 to 2020, the analysis explores how key dimensions of globalization—trade openness, foreign direct investment (FDI), and technological diffusion—affect income inequality across these countries. The results suggest a complex interplay between globalization and inequality, with varying impacts depending on the level of economic development, infrastructure, and institutional quality. This paper contributes to the ongoing debate on whether globalization exacerbates or reduces income inequality in developing regions, particularly within the African context.