Income Inequality, Governance and Economic Growth: The Case of EMCCA Countries

The Objective of this article is to assess the impact of governance and the Income Inequality on the economic growth in the six states, members of the Economic and Monetary Community of Central Africa (EMCCA) involved in the emergence process. The bad results recorded by the economies of the sub-region these years can be partially explained by the quality of governance associated with unequal reallocation of the resources. Despite the natural resources these countries are provided with, it is established that the rampant poverty situation is rapidly increasing and particularly affecting more rural areas than urban ones.Most of the theoretical as much as empirical surveys carry out controversial results on the connection between the disparity and the growth.From the data econometric analysis of some sample groups during the 1990-2015 period, the results‟ assessments of the dynamic panel show that: (1) The Income Inequality affects negatively the economic growth in the EMCCA Countries, (2) The composite index of governance positively affects the growth rate of the effective Gross Domestic Product (GDP) individually and (3) The interaction between the disparity income and governance hampers the economic growth.

Full Text: PDF     DOI: 10.15640/jeds.v6n1a7