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Another empirical look at the Kuznets curve

Author

Listed:
  • Rabindra Bhandari

    (Westminster College, Fulton, MO 65251, USA)

  • Gyan Pradhan

    (Eastern Kentucky University, Richmond, KY 40475, USA)

  • Mukti Upadhyay

    (Eastern Illinois University, Charleston, IL 61920, USA)

Abstract

This paper examines the functional relationships between income inequality, economic factors, institutions, and Kuznets’ inverted-U hypothesis. A model that ncorporates interactive as well as direct effects of several factors to capture their combined effect on inequality is developed. The model is estimated using two popular measures of inequality—the Gini coefficient, and the ratio of income shares in income distribution—using a panel data set for 57 countries from 1987 to 2006. The results provide support for Kuznets' hypothesis; however, the relationship between growth and inequality is conditioned by a host of economic and institutional factors.

Suggested Citation

  • Rabindra Bhandari & Gyan Pradhan & Mukti Upadhyay, 2010. "Another empirical look at the Kuznets curve," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 3(2), pages 7-19, December.
    • Handle: RePEc:tei:journl:v:3:y:2010:i:2:p:7-19
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    File URL: https://ijbesar.af.duth.gr/docs/volume3_issue2/kuznets.pdf
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    References listed on IDEAS

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    4. Mattias Lundberg & Lyn Squire, 2003. "The simultaneous evolution of growth and inequality," Economic Journal, Royal Economic Society, vol. 113(487), pages 326-344, April.
    5. Lopez , J. Humberto & Perry, Guillermo, 2008. "Inequality in Latin America : determinants and consequences," Policy Research Working Paper Series 4504, The World Bank.
    6. Ravallion, Martin & Chen, Shaohua, 1997. "What Can New Survey Data Tell Us about Recent Changes in Distribution and Poverty?," The World Bank Economic Review, World Bank, vol. 11(2), pages 357-382, May.
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    Cited by:

    1. Monica Szeles, 2013. "Re-examining the relationship between economic growth and inequality in the New Member States," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(5), pages 2799-2813, August.

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    More about this item

    Keywords

    Kuznets curve; inequality; growth; Gini coefficient; income shares;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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