IMPACT OF INTELLECTUAL PROPERTY RIGHTS AND GOVERNMENTAL POLICY ON INCOME INEQUALITY.

Abstract

The hypothesis of inverted U-curve dependence of the income inequality on the absolute value of the average income is still unresolved issue despite of the growing number of theoretical and empirical research on this topic. The paper examines the impact of governmental policy and the scientific and technological development on income inequality for 145 countries over a period 1979-2012. We found that the income inequality is influenced predominantly by governmental policy on social transfers. Based on the experimental data a model describing the influence of social contributions, the expenditure on research and development, intellectual property rights and GDP per capita was developed

Keywords

• Intellectual property rights, Kuznets curve, inverted U-curve, income inequality

References

1. Ahluwalia, M. S. (1976), “Inequality, poverty and development.” J. Development Economics., Vol. 3, pp. 307–342.
2. Anand, S., Kanbur, R.S.M. (1993), “The Kuznets process and the inequality- development relationship.” J. Development Economics, Vol. 40, pp. 25–52.
3. Barro, R. J. (2000), “Inequality and growth in a panel of countries.” J. Economic Growth, Vol. 5, pp. 5-32.
4. Bulir, A. (2001), “Income inequality: Does inflation matter?” IMF Staff Papers, Vol. 48, pp. 139–159.
5. Deininger, K., Squire, L. (1998), “New ways of looking at old issues: inequality and growth.” J. Development Economics, Vol. 57, pp. 259-287.
6. Hayami, Y., Godo, Y. (2005), Development economics: from the poverty to the wealth of nations, Oxford University Press, Oxford, pp 200-204.
7. Iradian, G. (2005) “Inequality, poverty, and growth: Cross-country evidence.”
8. Working paper No. 05/28. International Monetary Fund, Washington. Jha, S. (1996) “The Kuznets curve: A reassessments.” World Development, Vol. , pp.773-780.

9. Kuznets, S. (1955) “Economic Growth and Income Inequality.” American
10. Economic Review, Vol. 45, pp.1-28. Lin S.-C., Huang H.-C., Weng H.-W. (2006) “A semi-parametric partially linear investigation of the Kuznets’ hypothesis.” J. Comparative Economics, Vol. 34, pp. 634–647. WDI http://databank.worldbank.org Development Indicators, The World Bank