PUBLICATIONS

@workingpaper{Kodila-Tedika2014,
title = {Middle class in Africa: Determinants and Consequences},
author = {Simplice ASONGU & Julio Mukendi Kayembe A Oasis Kodila-Tedika},
editor = {African 2014 Governance and Development Institute WP/26/14},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Middle-class-in-Africa.Determinants-and-Consequences.pdf},
year = {2014},
date = {2014-12-01},
abstract = {This study complements the inclusive growth literature by examining the determinants and
consequences of the middle class in a continent where economic growth has been relatively
high. The empirical evidence is based on a sample of 33 African countries for a 2010 crosssectional
study. OLS, 2SLS, 3SLS and SUR estimation techniques are employed to regress a
plethora of middle class indicators, notably, the: floating, middle-class with floating, middleclass
without floating, lower-middle-income and upper-middle-income categories. Results can
be classified into two main strands. First, results on determinants broadly show that GDP per
capita and education positively affect all middle class dependent variables. However, we have
seen a negative nexus for the effect of ethnic fragmentation, political stability in general and
partially for economic vulnerability. Simple positive correlations have been observed for: the
size of the informal sector, openness and democracy. Second, on the consequences, the
middle class enables the accumulation of human and infrastructural capital, while its effect is
null on political stability and democracy in the short-run but positive for governance and
modernisation. Policy implications are discussed.},
keywords = {Poverty; Inequality; Middle class; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}