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Author
Dr Onyeke, Kenechi John,
Department of Marketing, Enugu State University of Science and Technology, Enugu.
08037745541
Abstract
This study examined the relationship between macroeconomic variables and income inequality in selected African countries over the period 1981 to 2023. The main objectives were to investigate the impact of national income and gross domestic product on income inequality. Using the autoregressive distributed lag (ARDL) model, the study analysed key macroeconomic indicators, including exchange rates, interest rates, employment levels, inflation, national income, gross domestic product, macroeconomic volatility, and global economic policy uncertainty. The findings indicate that stabilising exchange rates and maintaining consistent interest rates are critical for reducing income inequality, as they enhance trade competitiveness and market fairness. Employment quality and availability were found to be important determinants, with low-quality or insufficient employment contributing to rising income disparities. Inflation and global economic policy uncertainty were shown to exacerbate income inequality, disproportionately affecting poorer populations while wealthier individuals are better able to absorb economic shocks. The results underscore the importance of improving overall macroeconomic conditions and addressing systemic issues such as corruption to ensure equitable distribution of resources. The study concludes that effective macroeconomic management, combined with strategies to enhance employment, diversify economies, and promote social policies, is essential for reducing income inequality and fostering sustainable economic development across African countries.Keywords: Income Inequality, Macroeconomic Variables
