Income inequality and conflict in sub-Saharan Africa: investigating the resource curse syndrome

Abstract

Purpose The main aim of the study is to investigate the role of resource endowment in the relationship between income inequality and conflict in SSA. The study aligns with the United Nations’ Sustainable Development Goals, specifically SDG 10 (reduced inequality) and SDG 16 (promoting peaceful and inclusive societies). Design/methodology/approach The study employs the Driscoll-Kraay cross-sectional and spatial-consistent covariance matrix estimator to account for all forms of dependence. Findings The study finds that conflicts are exacerbated by income disparity, especially in nations with abundant natural resources. Further, the findings indicate that education, domestic investment and government quality are significant pathways for conflict transmission. According to the study, there will be less conflict in more stable regimes. According to the study’s findings, the efficient and fair allocation of natural and financial resources in resource-rich SSA economies may help mitigate regional conflicts and income inequality. The research and policy implications are discussed. Originality/value The study uncovers the role of natural resources in the income inequality-conflicts nexus in SSA.