This
study aims to determine effects of economic growth on income inequality by
classifiying countries in terms of their level of development. The validity of
Kuznets’s inverted-U shaped hypothesis is tested for four different panels that
is divided as low and low-middle income countries, upper-middle income
countries, high income countries and all countries. This paper examines that
the relationship between economic growth and income inequality by using data
for the period of 1995-2011 and 94 countries. The evidences support Kuznets’s
hypothesis. Income inequality decreases with economic growth in high income
countries, while it increases in low and low-middle income and upper-middle
income countries. The results indicate that economic growth should be supported
by the policies reducing income inequality.
Bu çalışma ülkeleri gelişme seviyelerine |
Journal Section | Articles |
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Authors | |
Publication Date | December 18, 2016 |
Submission Date | December 4, 2016 |
Published in Issue | Year 2016 Volume: 11 Issue: 3 |