The impact of education on income inequality remains a challenging issue at the core of economic debates. The present study attempts to investigate the effect of income inequality in a selection of Islamic countries during 1990-2013. Method of panel data has been implemented, and the fixed effects are examined against the random ones by the Hausman test. The impacts of gross domestic product (GDP) and training at primary, secondary and university levels on income inequality is investigated in the selected Islamic countries. Findings indicate that the enrolment rate in primary and secondary schools has a significant negative effect on income inequality, and the enrolment rate in university has a significant positive effect on income inequality. Thus, training in primary and secondary schools might reduce income inequality, and education in universities can increase income inequality because of the higher financial capability of certain classes of people and the expertise they have acquired. Likewise, the Kuznets inverted-U hypothesis is approved due to the positive and statistically significant estimated coefficient of

No abstract

Article InformationNowadays the terms of trade have great importance for developing countries compared to developed countries. Because worsening terms of trade, that all other conditions are constant, reduces economic welfare. It is believed that the decline in the terms of trade of developing countries to developed countries causes the transfer of income from developing countries to developed countries and increases the income gap between these two groups of countries. This paper aims to examine the Prebisch-Singer hypothesis in different countries. The study examines the relationship between net terms of trade and income terms of trade between oil -exporting developing countries, agricultural commodities exporting developing countries and developed countries exporter of manufactured goods as well as the terms of trade of Iran in 1980-2010. Prebisch-Singer hypothesis states about changes in net terms of trade that this variable, changes to the detriment of developing countries and primary commodities exporter (other than oil and agricultural commodities) and to the benefit of developed countries exporter of manufactured goods.Classification JEL: F19