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The Puzzle between Economic Growth and Income Inequality
Jönköping University, Jönköping International Business School, JIBS, Economics, Finance and Statistics.
Jönköping University, Jönköping International Business School, JIBS, Economics, Finance and Statistics.
2013 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

The purpose of this paper is to investigate the correlation between income inequality and economic growth in a cross-section of 90 countries from 2002 to 2006. The controversial Kuznets Hypothesis, the economic model that hypothesizes the relationship between inequality and per capita income is an inverted U-shaped curve, is scrutinized and investigated to consider its viability and accuracy. A multiple linear regression model is estimated and the viability of the regression model is supported by several statistical tests. Based on the estimated model, a negative correlation between growth and inequality has been found. 

Place, publisher, year, edition, pages
2013. , 33 p.
Keyword [en]
Income inequality, economic growth, Gini index, Lorenz curve, Kuznets curve, cross-sectional
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-23650OAI: oai:DiVA.org:hj-23650DiVA: diva2:708162
Supervisors
Available from: 2014-06-19 Created: 2014-03-26 Last updated: 2014-06-19Bibliographically approved

Open Access in DiVA

fulltext(934 kB)377 downloads
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CiteExportLink to record
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Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
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Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
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  • Other locale
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Output format
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  • asciidoc
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