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This paper investigates the impact of financial openness on financial sector development and income inequality. We use two approaches to capture financial openness for a panel dataset of 52 African countries from 1980–2019 and find that: (1) Principle-based financial openness policy negatively affects financial sector development and widens income inequality. In contrast, the outcome-based measures positively affect banking sector development and narrow income inequality. (2) Capital inflow to African countries is not merely pulled a vibrant macroeconomic fundamental. Only schooling and governance factors facilitate the impact of financial openness on financial sector development. (3) Adverse non-policy factors play an insignificant role in moderating the impact of financial openness. This implies that the impact of financial openness on financial sector development and income inequality is weak in countries experiencing a banking crisis or passing through a lengthy conflict. Our finding is consistent with the institutional quality theory, which claims robust institutions are needed. We underline that countries should take caution in implementing principle-based reforms. Particularly, there is an alternative policy path for African countries to optimize the benefit by pursuing outcome-based financial openness measures. [ABSTRACT FROM AUTHOR]

Over the past couple of decades, the world has witnessed a rise in greenhouse gas (GHG) emissions and rising income inequality that threatens human well-being. Addressing these challenges and ensuring sustainable development become a pressing issue for policymakers. This paper investigates the impact of GHG emissions on income inequality in Africa. The study uses a panel data set from 49 countries from 1981 to 2015 and shows that GHG emission widens income inequality. The result is robust for alternative emission indicators. A direct implication is that climate change policy should be designed to narrow income inequality. It is emphasized that mitigation actions should focus on the agriculture sector. Hence, intervention towards energy-smart agriculture, land conservation practices, exploiting the job creation potential, and strengthening value addition in the agricultural sector is decisive. Reforming agriculture reduces emission, narrows income inequality, and realizes sustainable development on the continent. [ABSTRACT FROM AUTHOR]