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R&D intensity and income inequality in the G7: 1870–2016

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  • Sefa Awaworyi Churchill
  • Bin Peng
  • Russell Smyth
  • Quanda Zhang

Abstract

We examine how R&D has contributed to income inequality in the Group of Seven countries from 1870 to 2016. Using newly developed panel data models that incorporate interactive fixed effects, we find that R&D is negatively associated with income inequality. Non‐parametric models that allow us to capture the time‐varying effect of R&D suggest that this average effect has been negative for most of this period. We find that economic growth and trade are important mechanisms through which R&D transmits to income inequality.

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  • Sefa Awaworyi Churchill & Bin Peng & Russell Smyth & Quanda Zhang, 2022. "R&D intensity and income inequality in the G7: 1870–2016," Scottish Journal of Political Economy, Scottish Economic Society, vol. 69(3), pages 263-282, July.
  • Handle: RePEc:bla:scotjp:v:69:y:2022:i:3:p:263-282
    DOI: 10.1111/sjpe.12298
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