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Factors Influencing Income Inequality In Transition Economies

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  • Anneli Kaasa

Abstract

A sharp rise of income inequality in the transition countries has caused a wide-ranging discussion about the factors affecting inequality. The present paper investigates a number of factors that influence income inequality in the transition countries. The main contribution of the study lies in its different approach to analysing these factors. While previous studies have either mainly focussed on single factors of inequality or have used regression analysis involving but a few factors, the author of the present paper uses principal component analysis in order to analyse as many different indicators as possible and at the same time avoid the problem of possible multicollinearity. As a result, four components are formed from the initial indicators. The impact of these components on income inequality and the component scores are then analysed.

Suggested Citation

  • Anneli Kaasa, 2003. "Factors Influencing Income Inequality In Transition Economies," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 18, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    • Handle: RePEc:mtk:febawb:18
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    Cited by:

    1. Mohammad Reza Alizadeh Emamzadeh, 2020. "Analysis of economic convergence of Islamic justice in selected Islamic countries," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-10, December.
    2. Majid Sameti & Leila Rafie, 2010. "Interaction of Income Distribution, Taxes and Economic Growth (The Case of Iran and Some Selected East Asian Countries)," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 15(1), pages 67-81, winter.
    3. Behrouz Sadeghi Amroabadi & Seyed Amin Mansouri & Mohammad Ali Ahmadi, 2024. "Investigating The Factors Affecting The Income Distribution On The Afghan Economy With Emphasis On Taxes," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 16(2 (July)), pages 312-332.
    4. Julia G. Dobreva, 2014. "Innovations And Industrial Development In Bulgaria," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 8(1), pages 524-529.
    5. Malvika Mahesh, 2016. "The effects of trade openness on income inequality - evidence from BRIC countries," Economics Bulletin, AccessEcon, vol. 36(3), pages 1751-1761.
    6. Mehmet AKYOL, 2016. "Effectiveness of State Aid for Investments In The Process of Economic Growth: Turkish Case," Turkish Economic Review, KSP Journals, vol. 3(2), pages 391-400, June.
    7. Penka Kovacheva, 2011. "Human capital and wage inequality during transition: evidence from Bulgaria," Post-Communist Economies, Taylor & Francis Journals, vol. 23(2), pages 237-255.
    8. Paravee Maneejuk & Woraphon Yamaka & Songsak Sriboonchitta, 2021. "Does the Kuznets curve exist in Thailand? A two decades’ perspective (1993–2015)," Annals of Operations Research, Springer, vol. 300(2), pages 545-576, May.
    9. Panagiotis Konstantinou & Anastasios Rizos & Artemis Stratopoulou, 2022. "Macroprudential policies and income inequality in former transition economies," Economic Change and Restructuring, Springer, vol. 55(2), pages 1005-1062, May.

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