CONVERGENCE ANALYSIS OF PER CAPITA INCOME (PCI) IN THE SUB-SAHARAN AFRICAN (SSA)

Abstract

This study investigates income convergence of some selected countries, in the Sub Saharan Africa from the period 2000 to 2020. The broad objective of this research is to analyze the income convergence of some selected countries in Sub-Sahara Africa. However, the specific objectives of this study are: to examine the trend and pattern of incomes of the selected countries; to evaluate the nature of absolute and conditional convergence of income within the selected countries; and to also determine the possibility of the existence of clubs within the selected countries in the Sub-Saharan Africa. The study scope is limited to 42 countries within the Sub-Sahara Africa. The research was conducted based on an annual time-series data sourced from the World Bank Development indicators database, 2020. The methodology used for this study was adopted from the model of estimating α and ß-convergence by John Nixon. Data for this study were analyzed using both descriptive as well as inferential statistics, regression analysis (time series). The findings of this study reveals that there is convergence of income. Income and fertility have a weak negative correlation while the correlation between enrolment and income is a weak positive. The correlation between fertility and enrolment is also negative with the degree of association being about 31%. The result also indicates that there is causality running from fertility to enrolment among the countries selected for the study. The study recommends among others; that in order to be able to address the issues of poverty and wide per capita income gaps amongst countries in Sub-Sahara Africa, governments of these countries need to come together and reach both bilateral and multilateral agreements on inter-regional and sub-regional trade in order to achieve sustainable economic growth and development; that Sub-Saharan African countries need to scale-up their capacities in the area of inter-regional and intra-regional trade liberalization (free trade) through establishing free trade zone(s) that would encourage growth and development of the sub-region.