Does Income Inequality Create Excessive Threats to the Sustainable Development of Russia? Evidence from Intercountry Comparisons via Analysis of Inequality Heatmaps

Дорофеев, М. Л.

doi:10.3390/economies9040166

Cited by 5 publications

(1 citation statement)

References 32 publications

(34 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…First of all, we should point out that there are many different types of income inequality indicators, depending on the type of income which is used to calculate the Gini index (Dorofeev 2021a). The idea of a critical level of economic inequality, proposed by the World Bank, is rather interesting.…”

Section: Analysis Of Quartile Income Groups and Search Of A Critical ...mentioning

confidence: 99%

Interrelations between Income Inequality and Sustainable Economic Growth: Contradictions of Empirical Research and New Results

Дорофеев

2022

Economies

Self Cite

View full text Add to dashboard Cite

The idea that high levels of economic inequality negatively affect the rate and sustainability of economic growth is quite popular in the scientific literature. Therefore, it is usually proposed to take some regulative measures to reduce economic inequality in order to boost economic growth. Should the thesis be considered as a populist slogan or a scientifically proven fact? This article analyzes the results of 22 empirical studies on the relationship between economic inequality and economic growth conducted during the period of 1917–2018. We used meta-analysis to examine and systematize the results of previous empirical studies. The literature review and the analysis of the results from previous studies mainly indicate a negative relationship between economic inequality and economic growth (59% of the previous empirical research). The research gap is that on average these studies are rather controversial to each other and we cannot say that we understand these relationships correctly. To answer the questions concerning the interrelations between income inequality and sustainable economic growth, we made our own empirical research. To do this we used a qualitative pairwise correlation comparison method and analyzed panel data of 39 countries for the period of 1980–2019. The correlation between income inequality and sustainable economic growth was evaluated basing on the Gini index (GI) and Gross Domestic Product (GDP). Our calculations and analysis show that on average, in approximately 57.8% of moments in the period between 1980–2018, this correlation was positive in our sample of countries. The novelty of our study is that we show in detail how income inequality and economic growth are interconnected for each particular country and on average for the whole sample of countries. In addition, we used the inequality transparency index to adjust our calculations for data quality. Three hypotheses were tested in the study. Only one of them was confirmed by our research. The level of income inequality determines the direction of its impact on economic growth. An increase in income inequality in countries with low levels of inequality in most cases boosts economic growth and vice versa. Additionally, we received partial confirmation of our other hypothesis and found out that the correlation between economic growth and income inequality is definitely more negative for countries with low income and more positive in countries with high income per capita.

show abstract

Section: Analysis Of Quartile Income Groups and Search Of A Critical ...mentioning

confidence: 99%

Interrelations between Income Inequality and Sustainable Economic Growth: Contradictions of Empirical Research and New Results

Дорофеев

2022

Economies

Self Cite

View full text Add to dashboard Cite

show abstract

Financial Regulation of Household Poverty and Income Inequality: ESG Sustainability and Effectiveness of Social Security Systems

Dorofeev,

Khare

2024

Contributions to Management Science

View full text Add to dashboard Cite

Impact of the Quality of the Institutional Structure of the Economy on Income Inequality of Households: Results of a Cross-National Study

Дорофеев

2022

jour

Self Cite

View full text Add to dashboard Cite

Institutional quality and effectiveness of government institutions are important factors for sustainable and dynamic economic growth. These factors can have a significant impact on the dynamics of economic inequality and poverty in a country. The number of publications on this topic began to increase about 20–30 years ago. Scientists have been researching whether the government is able to influence the problem of economic inequality, which is growing since the 1980s, and on what factors it depends.This topic remains relevant today, as all the necessary answers have not been received yet.The purpose of this research article is to clarify the relationships between the institutional structure quality of an economy and the income inequality of households.The article uses such methods as analysis and synthesis, systematization, classification, and categorization of information; classical correlation analysis, as well as the method of analysis of qualitative pairwise correlation. The study highlights that there is high dependence between the analyzed variables in some countries if we look at them in separately. This dependency can take on both negative and positive values. At the same time, analyzing the full sample of countries, as well as in quartile groups classified by the level of income inequality, we did not reveal any pattern or special sign by which the dependence between the studied variables becomes more pronounced and distant from zero. The study shows that the correlation value between the variables is just below zero over the Pearson correlation coefficient. More unambiguous results were obtained when the list of countries was filtered by the indicator of the inequality transparency index. When analyzing this particular portion of our sample of countries, we obtained results with moderately negative dependence between the study variables.We concluded that for developed countries with an effective government and relatively low levels of income inequality, the decline in the quality of the institutional structure of the economy on average will be accompanied by an increase in income inequality and vice versa.

show abstract

Does Income Inequality Create Excessive Threats to the Sustainable Development of Russia? Evidence from Intercountry Comparisons via Analysis of Inequality Heatmaps

Cited by 5 publications

References 32 publications

Interrelations between Income Inequality and Sustainable Economic Growth: Contradictions of Empirical Research and New Results

Interrelations between Income Inequality and Sustainable Economic Growth: Contradictions of Empirical Research and New Results

Financial Regulation of Household Poverty and Income Inequality: ESG Sustainability and Effectiveness of Social Security Systems

Impact of the Quality of the Institutional Structure of the Economy on Income Inequality of Households: Results of a Cross-National Study

Contact Info

Product

Resources

About