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The Effects of Macroeconomic Variables on Income Inequality Based on Cross-Section Analysis

In: Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022)

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  • Bingyue Bai

    (Guizhou University, College of Science and Technology)

Abstract

Almost all countries in the world are experiencing economic growth and technological progress, but the gap between rich and poor is also steadily widening. As a result, the income inequality has become an important issue that every country must face. Using cross-sectional data from 54 different countries in 2013, this study examines the influencing factors of income inequality. Data analysis shows that external balance, R&D expenditure and inflation have a positive impact on the Gini index. Moreover, higher tariff levels and exports of goods and services will reduce income inequality. This paper helps to explain the problems with macroeconomic tools and the causes of income inequality.

Suggested Citation

  • Bingyue Bai, 2022. "The Effects of Macroeconomic Variables on Income Inequality Based on Cross-Section Analysis," Advances in Economics, Business and Management Research, in: Faruk Balli & Au Yong Hui Nee & Sikandar Ali Qalati (ed.), Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022), pages 345-353, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-052-7_40
    DOI: 10.2991/978-94-6463-052-7_40
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