Dynamic analysis of income disparities in Africa: Spatial Markov chains approach

Abstract

This article presents an innovative method for assessing income inequalities between African countries, using a dynamic approach based on the Spatial Markov chain. This method differs from traditional static tools such as the Gini index and the Theil index. We have analyzed regional income from 1980 to 2022 in 54 African countries, exploring the distinct economic trajectories of each country and the factors that influence them. This study highlights the growing interdependence of African economies, demonstrating how the economic situation of one country can be affected by its neighbors. The results of our research reveal the complexity and diversity of income disparities in Africa, exacerbated by regional factors and interactions between countries. They underline the need for tailor-made economic policies, adapted to the specificities of each country. Finally, the study acknowledges certain limitations, particularly with regard to the availability of the data and the geographical scope of the analysis.

Keywords

• Spatial Markov chain
• Income inequality
• Regional economic dynamics
• African economies interdependence