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Another empirical look at the Kuznets curve

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  • Rabindra Bhandari

    ()
    (Westminster College, Fulton, MO 65251, USA)

  • Gyan Pradhan

    ()
    (Eastern Kentucky University, Richmond, KY 40475, USA)

  • Mukti Upadhyay

    ()
    (Eastern Illinois University, Charleston, IL 61920, USA)

Abstract

This paper examines the functional relationships between income inequality, economic factors, institutions, and Kuznets’ inverted-U hypothesis. A model that ncorporates interactive as well as direct effects of several factors to capture their combined effect on inequality is developed. The model is estimated using two popular measures of inequality—the Gini coefficient, and the ratio of income shares in income distribution—using a panel data set for 57 countries from 1987 to 2006. The results provide support for Kuznets’ hypothesis; however, the relationship between growth and inequality is conditioned by a host of economic and institutional factors.

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Bibliographic Info

Article provided by Technological Educational Institute (TEI) of Kavala, Greece in its journal International Journal of Economic Sciences and Applied Research (IJESAR).

Volume (Year): 3 (2010)
Issue (Month): 2 (December)
Pages: 7-19

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Handle: RePEc:tei:journl:v:3:y:2010:i:2:p:7-19

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Web page: http://www.ijesar.org/
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Related research

Keywords: Kuznets curve; inequality; growth; Gini coefficient; income shares;

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References

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  1. Francois, Joseph F. & Rojas-Romagosa, Hugo, 2005. "The construction and interpretation of combined cross-section and time-series inequality datasets," Policy Research Working Paper Series 3748, The World Bank.
  2. Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, vol. 57(2), pages 259-287.
  3. Mattias Lundberg & Lyn Squire, 2003. "The simultaneous evolution of growth and inequality," Economic Journal, Royal Economic Society, vol. 113(487), pages 326-344, 04.
  4. (River) Huang, Ho-Chuan & Lin, Shu-Chin & Suen, Yu-Bo & Yeh, Chih-Chuan, 2007. "A quantile inference of the Kuznets hypothesis," Economic Modelling, Elsevier, vol. 24(4), pages 559-570, July.
  5. Lopez , J. Humberto & Perry, Guillermo, 2008. "Inequality in Latin America : determinants and consequences," Policy Research Working Paper Series 4504, The World Bank.
  6. Ravallion, Martin & Chen, Shaohua, 1997. "What Can New Survey Data Tell Us about Recent Changes in Distribution and Poverty?," World Bank Economic Review, World Bank Group, vol. 11(2), pages 357-82, May.
  7. Galor, Oded & Tsiddon, Daniel, 1996. "Income Distribution and Growth: The Kuznets Hypothesis Revisited," Economica, London School of Economics and Political Science, vol. 63(250), pages S103-17, Suppl..
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Cited by:
  1. Monica Szeles, 2013. "Re-examining the relationship between economic growth and inequality in the New Member States," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(5), pages 2799-2813, August.

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