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Income policy and income distribution in selected Asian countries: China, Singapore, Japan and Australia

In: Geopolitical Uncertainty and International Business

Author

Listed:
  • Tatsuyuki Ota
  • Kiminari Tachiyama

Abstract

The validity of the Kuznets hypothesis has often been controversial as income inequality has risen sharply in some countries and for certain time periods, which can largely be ascribable to economic and fiscal policies introduced in each respective country. The results of our experimental study of the impact of fiscal policies on income inequality in four Asian countries (advanced economies (AEs): Japan and Australia, and emerging economies (EEs): Singapore and China) show that the role of income tax and transfer payments in inequality reduction was greatest in the two AEs, whereas it was minimal in China, with Singapore falling in between. Overall, this suggests that fiscal policies have a greater effect on income inequality in advanced economies compared to emerging ones.

Suggested Citation

  • Tatsuyuki Ota & Kiminari Tachiyama, 2024. "Income policy and income distribution in selected Asian countries: China, Singapore, Japan and Australia," Chapters, in: Bernadette Andreosso-O'Callaghan & Daniel Rajmil (ed.), Geopolitical Uncertainty and International Business, chapter 7, pages 113-134, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:22971_7
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    File URL: https://www.elgaronline.com/doi/10.4337/9781035325412.00016
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