Potential Impact of Climate Change and Armed Conflict on Inequality in Sub-Saharan Africa

This study investigates the potential impact of climate change and armed conflict on inequality in Sub-Saharan Africa (SSA). The system-GMM for a panel of 35 SSA countries is employed using annual data from 1997 to 2018. The empirical results indicate that armed conflict and climate are major drivers of inequality in SSA. The direct impact of the two determinants is more than the indirect impact. Also, the impact of armed conflict is more than the climate change. The coefficients of population growth, output growth, unemployment, natural rent, exchange rate and inflation rate are significant positive predictors of inequality in the SSA. The study advocates for a multidisciplinary inclusive growth strategy that prioritises the climate change reversal, de-escalation of armed conflict, population control, reduction of the unemployment rate and increasing informal sector productivity, to promote inclusive growth and reduce inequality. However, sequencing the policy targets relative to the magnitude of their impact on inequality is extremely crucial.