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Income inequality and Economic Development: evidences from Brazilian Municipalities

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  • M., Cassandro

Abstract

This note aimed to investigate, within Brazilian municipalities, the relationship between income inequality and economic development. We used data from 5,566 Brazilian municipalities, and parametric and nonparametric tools were used. The results obtained show that there is no inverted-U relationship between these two variables. Our best model (the nonparametric model) suggest an U-shape relationship between income inequality and economic development. This finding differs from previous studies presented in the literature. This results indicates that even in the more developed municipalities, the gap between rich and poor is increasing.

Suggested Citation

  • M., Cassandro, 2018. "Income inequality and Economic Development: evidences from Brazilian Municipalities," MPRA Paper 89517, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:89517
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    References listed on IDEAS

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    1. John A. List & Craig A. Gallet, 1999. "The Kuznets Curve: What Happens After the Inverted‐U?," Review of Development Economics, Wiley Blackwell, vol. 3(2), pages 200-206, June.
    2. Cassandro Mendes & Olugbenga Adesida, 2013. "Income inequality and economic development: evidence from sub-Saharan African countries," Economics Bulletin, AccessEcon, vol. 33(2), pages 1565-1574.
    3. Erik Alencar de Figueiredo & Julio César Araújo da Silva Junior, 2011. "A Hipótese de Kuznets para os Municípios Brasileiros: Testes para as Formas Funcionais e Estimações Não-Paramétricas," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 12(1), pages 149-165.
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    More about this item

    Keywords

    Kuznets Curve; GAM; income inequality; economic development;
    All these keywords.

    JEL classification:

    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General

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