This paper aimed to ascertain if there is a statistically significant difference in linearity or directional effect of urbanisation on income inequality in Asia and Sub-Saharan Africa. To explore the research question it uses panel estimations to introduce into the literature a bi-regional analysis of the relationship between urbanisation and income inequality over the period 1990-2020. This was conducted using panel estimations and dynamic panel Generalized Method of Moments techniques. The findings show that Asia and Sub-Saharan Africa differ in terms of the directional effect of urbanisation on income inequality, as well as linearity of the relationship. First estimates for Asia indicate a statistically significant inverse-U shaped relationship between urbanisation and income inequality, with an implied turning point at 23% urbanisation. Whereas estimates for Sub-Saharan Africa indicate a statistically significant negative linear relationship between urbanisation and income inequality, with a larger statistically significant negative linear effect in the long run. Future urbanisation in both regions should reduce income inequality on aggregate, ceteris paribus, as 46/48 Asia nations have passed the implied turning point as of 2020.This paper aimed to ascertain if there is a statistically significant difference in linearity or directional effect of urbanisation on income inequality in Asia and Sub-Saharan Africa. To explore the research question it uses panel estimations to introduce into the literature a bi-regional analysis of the relationship between urbanisation and income inequality over the period 1990-2020. This was conducted using panel estimations and dynamic panel Generalized Method of Moments techniques. The findings show that Asia and Sub-Saharan Africa differ in terms of the directional effect of urbanisation on income inequality, as well as linearity of the relationship. First estimates for Asia indicate a statistically significant inverse-U shaped relationship between urbanisation and income inequality, with an implied turning point at 23% urbanisation. Whereas estimates for Sub-Saharan Africa indicate a statistically significant negative linear relationship between urbanisation and income inequality, with a larger statistically significant negative linear effect in the long run. Future urbanisation in both regions should reduce income inequality on aggregate, ceteris paribus, as 46/48 Asia nations have passed the implied turning point as of 2020.

Panel data for 48 SSA and 48 Asian countries, drawn from the World Bank's WDI and WGI databases. Supplementary data for the Gini Index was drawn from the UNU's WIID. All of the raw data was taken from publicly available sources.