Financial Development-Income inequality nexus in Developing economies in post-Covid-19 Era: Evidence from Nigeria
No Thumbnail Available
Date
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Description
Issues: To have a thriving economy post-COVID-19, relevant and viable policies need to be put in place. The
incidence of COVID-19 has reduced the last 5 years efforts towards reducing global poverty and income
inequality to nothing as poverty and income inequality have further widened. Income inequality is the disparity
in income distribution that has further widened due to the income loss of people because of the lockdown
instigated to curb the spread of the pandemic. While the lockdown affected global productivity, developing
economies are more likely to be more affected because the pandemic exposed the vulnerabilities of economies
due to the pre-existing developmental issues plaguing developing economies. Therefore, measures must be taken
drastically to ensure that developing economies have an economy to look forward to post-COVID. Methods: This
study analysed how financial development can effectively aid income inequality reduction in Africa, focusing on
Nigeria. The study examined the Nigeria Baseline Household survey conducted by the World Bank during the
heat of COVID-19 with the aid of descriptive statistics. Findings: findings show that financial development can
drastically reduce income inequality when electronic measures are embraced.
Keywords
HB Economic Theory, HJ Public Finance