The Kuznets Curve Hypothesis Checked Out on Up-To-Date Observations in African Countries

Abstract

The purpose of this article is to study empirically whether the Kuznets’ curve hypothesis on inequality and development is present in the economies located in Africa, as well as whether there is a minimum income for this hypothesis to begin to be fulfilled. In order to study this question, a panel of data from 45 countries is available for the period 1975–2019, and these data are analysed through a graphical point of view and through an econometric analysis using the pooled mean group estimator. The results obtained allow us to conclude that there is evidence in favour of Kuznets’ hypothesis and that a minimum level of income is required for it to be significantly observed. As well as the fact that today there is still a palpable heritage of European colonization.