The reduction of income inequality between poor and rich constitutes one of the goals of governments and policymakers across the world. Financial development remains one way to cope with income inequality but its influence on income inequality is mixed. Thus, this paper explores the direct and indirect transmission mechanisms through which financial development can affect income inequality in Sub-Saharan Africa (SSA). The study utilises data from the Standardised World Income Inequality Database (SWIID) for income inequality and World Development Indicators (WDI) for financial development over the period 1995 to 2015. Analysing the data using the System Generalised Method of Moments (SGMM), the results show that financial development solely increases income inequality but its interaction with GDP per capita has a negative and significant effect on income inequality. These findings suggest that the financial development need a good economic growth to reduce income inequality.

中文翻译：

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金融发展和收入不平等：撒哈拉以南非洲地区的直接和间接传导机制

减少贫富之间的收入不平等是世界各国政府和政策制定者的目标之一。金融发展仍然是应对收入不平等的一种方式，但其对收入不平等的影响是复杂的。因此，本文探讨了金融发展影响撒哈拉以南非洲地区收入不平等的直接和间接传导机制。该研究利用了 1995 年至 2015 年期间收入不平等标准化世界收入不平等数据库 (SWIID) 和金融发展世界发展指标 (WDI) 的数据。使用系统广义矩量法 (SGMM) 分析数据，结果研究表明，金融发展只会增加收入不平等，但其与人均 GDP 的相互作用对收入不平等产生显着的负面影响。这些发现表明，金融发展需要良好的经济增长来减少收入不平等。