Trends in economic growth and inequality in southern Africa: A comparative analysis among the low income countries

Zico, Abel Joaquim

This study investigates and compares the trends of economic growth and income inequalities in five low income countries members of Southern Africa Development Community (SADC) for the period of 1990 to 2013. It also analyses the relationship between growth and inequalities in the studied countries. It is a quantitative and qualitative study and was used the descriptive, analytical, statistical and comparative methods. The descriptive analysis indicates that the entire five economies grew in different performances and they are not absolutely convergent, but is a relative convergence among some countries. However, the inequality level trend to decrease in these countries but in very small levels. The results using econometric models and Ordinary Last Square (OLS) estimator show that the factors affecting economic growth and inequalities are not all the same and do not react in the same way for all countries. It also found out that the relationship between growth and inequality is not mutual in all countries. Therefore, growth trend to reduce inequality in Mozambique, Tanzania and Zambia, but trend to increase in Zimbabwe.

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