A Reconsideration of Kuznets Curve Across Countries: Evidence from the Co-Summability Approach

Chang, Shinhye; Clance, Matthew; Gupta, Rangan; Gözgör, Giray

doi:10.1353/jda.2021.0029

Cited by 2 publications

(2 citation statements)

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“…Research by Sayed & Peng (2020) also shows the same thing when the long-term Kuznets curve is in the shape of the letter N. This is the case with Chang et al, (2021), their research did not show strong evidence in favor of the Kuznets inverted U-curve. Meanwhile, Keskin (2017) found a relationship between inequality and growth in developed and developing countries.…”

Section: Discussionmentioning

confidence: 91%

The Causality Relationship Between Growth and Inequality: Java and Sumatera Studies

Mustika,

Parmadi,

Emilia

et al. 2023

EDAJ

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This research article has the theme of the causal relationship between growth and inequality with the object of research being the provinces on the island of Java and Sumatra island. The purpose of this study is to identify and analyze conditions of inequality in income distribution and economic growth and to analyze whether there is a causal relationship between inequality income with economic growth in provinces on the island of Java and provinces on the island of Sumatra during the 2015-2020 period. The research method used is quantitative descriptive using the Granger causality test analysis tool. Based on the research results, the condition of economic growth in each province on Sumatra Island fluctuated, with the highest average economic growth in South Sumatra Province and the lowest in Riau Province. Inequality in the distribution of provincial income on the island of Sumatra fluctuates, the highest average income distribution inequality is in the provinces of South Sumatra and Bengkulu, and the lowest is in the province of the Bangka Belitung Islands. Meanwhile in Java, economic growth also fluctuated. The highest average economic growth was in DI Yogyakarta Province, and the lowest was in Central Java Province. Inequality in the distribution of provincial income in Java Island fluctuates, with the highest inequality in Yogyakarta province and the lowest in Central Java province. In addition, the results of the Granger causality test show that there is no one-way or two-way causality relationship between economic growth and income inequality on the islands of Sumatra and Java.

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Section: Discussionmentioning

confidence: 91%

The Causality Relationship Between Growth and Inequality: Java and Sumatera Studies

Mustika,

Parmadi,

Emilia

et al. 2023

EDAJ

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“…Equation (1) provides the empirical characteristics of β 1 , β 2 , and β 3 showing the shapes of Kuznets hypothesis for testing several forms of economic growth-income inequality relationship (Clance et al, 2019). (a) β 1 > 0, β 2 = β 3 = 0 implies an increasing linear relationship, which means that increasing levels of inequality are accompanied by rising incomes; (b) β 1 < 0, β 2 = β 3 = 0 reveals a decreasing linear function; (c) β 1 > 0, β 2 < 0, and β 3 = 0 indicates a quadratic relationship in an inverted U-shaped pattern; (d) β 1 < 0, β 2 > 0, and β 3 = 0 reveals a quadratic relationship in U-shaped pattern, in direct contrast with Kuznets curve; (e) β 1 > 0, β 2 < 0, β 3 > 0 reveals an N-shaped curve; (f) β 1 < 0, β 2 > 0, β 3 < 0 suggests an S-shaped function; and (g)β 1 = β 2 = β 3 = 0 indicates a flat behavior (Figure 3)…”

Section: Economic Growthmentioning

confidence: 99%

Re-examining the Kuznets Curve Hypothesis for South Asian Countries: New Evidences

Ali

Tariq

Azam

2022

Journal of Asian and African Studies

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This study re-examines the validity of Kuznets curve hypothesis for six South Asian countries, namely, Pakistan, Nepal, Bhutan, Sri Lanka, India, and Bangladesh, over the period 1991–2018. The Pooled Mean Group (PMG) technique results in the short and long run reveal an S-shaped curve relationship between income inequality and Gross Domestic Product (GDP) per capita for all countries, that is, negative at the beginning, positive after the first turning point (GDP per capita level, US$473), and negative after the second turning point (GDP per capita level, US$3827) when GDP per capita reaches the maximum level. In contrast, the country-specific results show, that the first and second turning points of GDP per capita are US$468 and US$2298 for India, US$445 and US$1408 for Pakistan, US$450 and US$9045 for Bhutan, and US$925 and US$6836 for Sri Lanka, which support the validity of the S-shaped curve. Moreover, the results also show the existence of N-shaped curve with GDP per capita (i.e. first and second) turning points of US$473 and US$2864 for Bangladesh and US$105 and US$3568 for Nepal. The findings suggest that income inequality gaps in Asian countries seem to be conditional on the levels of GDP per capita. In this regard, expansionary fiscal policy, specifically in the form of government spending, promotion of exports and employment, and price stability can play a vital role in increasing the GDP per capita levels and narrowing the income inequlaity gaps in the selected Asian countries.

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A Reconsideration of Kuznets Curve Across Countries: Evidence from the Co-Summability Approach

Cited by 2 publications

References 47 publications

The Causality Relationship Between Growth and Inequality: Java and Sumatera Studies

The Causality Relationship Between Growth and Inequality: Java and Sumatera Studies

Re-examining the Kuznets Curve Hypothesis for South Asian Countries: New Evidences

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