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Inequality convergence: A world-systems theory approach

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  • Kutuk, Yasin

Abstract

This article explores whether there is inequality convergence among countries. The analysis adopts a framework of dependency theory and its later development through world-systems theory. The analysis draws on Gini indices and Palma ratios from 103 countries for the period 1990–2018. The OLS and GMM analyses reveal horizontal convergence between semi-periphery and core countries as classified by Chase-Dunn et al. (2000). This classification also explains vertical convergence examined with clustering analysis between these countries.

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  • Kutuk, Yasin, 2022. "Inequality convergence: A world-systems theory approach," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 150-165.
    • Handle: RePEc:eee:streco:v:63:y:2022:i:c:p:150-165
    DOI: 10.1016/j.strueco.2022.09.009
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    More about this item

    Keywords

    Inequality convergence; World-systems theory; The Gini index; The Palma ratio; OLS; GMM;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General

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