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Inequality and development: Evidence from semiparametric estimation with panel data

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  • Zhou, Xianbo
  • Li, Kui-Wai

Abstract

Evidences from nonparametric and semiparametric unbalanced panel data models with fixed effects show that Kuznet’s inverted-U relationship is confirmed when economic development reaches a threshold. The model tests justify semiparametric specification. The integrated net contribution of control variables to inequality reduction is significant.

Suggested Citation

  • Zhou, Xianbo & Li, Kui-Wai, 2011. "Inequality and development: Evidence from semiparametric estimation with panel data," Economics Letters, Elsevier, vol. 113(3), pages 203-207.
    • Handle: RePEc:eee:ecolet:v:113:y:2011:i:3:p:203-207
    DOI: 10.1016/j.econlet.2011.07.013
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    1. Huang, Ho-Chuan (River) & Lin, Yi-Chen & Yeh, Chih-Chuan, 2009. "Joint determinations of inequality and growth," Economics Letters, Elsevier, vol. 103(3), pages 163-166, June.
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    6. Mr. Garbis Iradian, 2005. "Inequality, Poverty, and Growth: Cross-Country Evidence," IMF Working Papers 2005/028, International Monetary Fund.
    7. Barro, Robert J, 2000. "Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
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    Cited by:

    1. Hamadi, Malika & Heinen, Andréas, 2015. "Firm performance when ownership is very concentrated: Evidence from a semiparametric panel," Journal of Empirical Finance, Elsevier, vol. 34(C), pages 172-194.
    2. Elina Tuominen, 2015. "Reversal of the Kuznets Curve: Study on the Inequality-Development Relation Using Top Income Shares Data," WIDER Working Paper Series wp-2015-036, World Institute for Development Economic Research (UNU-WIDER).
    3. José Alves & José Carlos Coelho & Alexandre Roxo, 2022. "How Economic Growth Impinges on Income Inequalities?," CESifo Working Paper Series 10154, CESifo.
    4. Joël Hellier & Stéphane Lambrecht, 2013. "Inequality, Growth and Welfare: The Main Links," Palgrave Macmillan Books, in: Joël Hellier & Nathalie Chusseau (ed.), Growing Income Inequalities, chapter 9, pages 274-311, Palgrave Macmillan.
    5. Kui-Wai Li, 2014. "An analysis on economic opportunity," Applied Economics, Taylor & Francis Journals, vol. 46(33), pages 4060-4074, November.
    6. Tuominen Elina, 2016. "Reversal of the Kuznets curve: Study on the inequality–development relation using top income shares data," Working Papers 1610, Tampere University, Faculty of Management and Business, Economics.
    7. Azfar Hilmi Baharudin & Yap Su Fei, 2017. "A Contemporary Re-Examination Of Malaysia’S Economic Growth: The Issues Of Equity, Efficiency And Liberalization," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(02), pages 509-530, June.
    8. Elina Tuominen, 2015. "Reversal of the Kuznets curve: Study on the inequalitys development relation using top income shares sata," WIDER Working Paper Series 036, World Institute for Development Economic Research (UNU-WIDER).
    9. Aadil Ahmad Ganaie & Sajad ahmad Bhat & Bandi Kamaiah, 2018. "Macro-determinants of Income Inequality: An Empirical Analysis in case of India," Economics Bulletin, AccessEcon, vol. 38(1), pages 309-325.
    10. Yashar Tarverdi, 2018. "Aspects of Governance and $$\hbox {CO}_2$$ CO 2 Emissions: A Non-linear Panel Data Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 69(1), pages 167-194, January.
    11. Zongwu Cai & Linna Chen & Ying Fang, 2015. "Semiparametric Estimation of Partially Varying-Coefficient Dynamic Panel Data Models," Econometric Reviews, Taylor & Francis Journals, vol. 34(6-10), pages 695-719, December.
    12. Menegaki, Angeliki N. & Tsagarakis, Konstantinos P., 2015. "Rich enough to go renewable, but too early to leave fossil energy?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1465-1477.

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    More about this item

    Keywords

    Kuznet’s inverted-U; Semiparametric model; Unbalanced panel data;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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