THE RELATIONSHIP BETWEEN ECONOMIC DEVELOPMENT AND INCOME INEQUALITY: PANEL DATA ANALYSIS


VAN M. H., SULAIMAN R. A.

İSTANBUL International Modern Scientific Research Congress -II, İstanbul, Turkey, 25 December 2021, pp.295-303

  • Publication Type: Conference Paper / Full Text
  • City: İstanbul
  • Country: Turkey
  • Page Numbers: pp.295-303
  • Van Yüzüncü Yıl University Affiliated: Yes

Abstract

Income inequality and economic development always have been one of the most important issues among the economists and politicians. Also, income inequality and economic development are important for economic sustainability. This analysis can be experienced, using data on the performance of a set of countries. For this purpose, relationship between economic development and income inequality one of the successful reasons for using to examine the Kuznets hypothesis, Income inequality is measured by many different methods such as the Gini coefficient, Lorenz curve, the Theil index, Atkinson index, Decile ratios and Robin Hood index and For this purpose method is used for this study panel data analysis.A large of papers have investigated the relationship between economic development and income inequality. The purpose of our study is to impact the relationship between economic development and income inequality. Many economists have tried to provide empirical evidence of the impact of income inequality on economic growth. However, the findings of the authors working on this subject are not conclusive. This is due to the fact that income inequality is also associated with other factors affecting economic growth. To be clear, there is no single universal mechanism that explains the relationship between income inequality and economic growth. In fact, the size and degree of the relationship between these two variables are not the same. Economic development the process there by simple low-income national economics are transformed into modern industrial economies. Although the term is sometimes used as a synonym for economic growth, generally it is employed to describe a change in a country’s economy involving qualitative as well as quantitative improvements.