Innovations and income inequalities – a comparative study

Włodarczyk, Julia

doi:10.14254/2071-8330.2017/10-4/13

Cited by 13 publications

(12 citation statements)

References 20 publications

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“…Similarly, Claudia et al (2018) study the effect of innovation on income inequality on a larger scale, for 126 European Union spatial units and find that although increase in level of innovation increases the income of highincome groups, it reduces the overall inequality by raising the income of other income-groups as well. Włodarczyk (2017) find that the higher number of patents and higher values on Creative Economy Index leads to a decrease in the income inequality across 30 European countries. In a recent study, Tchamyou et al (2019) find that increase or innovation in technology reduces the income inequality across 46 states of Africa over the period 1996-2014.…”

Section: Literature Reviewmentioning

confidence: 82%

Does distribution of energy innovation impact distribution of income: A quantile-based SDG modeling approach

Sinha¹,

Sengupta²,

Kalugina

et al. 2020

Technological Forecasting and Social Change

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Despite the ongoing research on energy innovation and economic growth, little is known on how degree of energy innovation impacts income inequality within a nation. To address this research gap, we have developed a bivariate model to analyze how distribution of energy innovation affects the income distribution in a certain country. Using the Fisher Ideal Index, we have calculated energy efficiency as an indicator of energy innovation. Quantile-on-Quantile regression has been applied to capture the impact on energy innovation across different income quantiles in Next 11 (N11) countries. Results show that energy innovation can have different outcomes, across the member countries of N11 group, namely a) equitable and positive impact, (b) negative impact, and (c) inequitable impact in terms of distribution of income. We have inferred important policy implications, which might lead to sustainable development strategies in N11 countries. This study is one of the first to establish the direct link between energy innovation and income inequality across different quantiles within a nation. Further, we successfully demonstrate the application of advanced quantile methods in inferring Sustainable Development Goal (SDG) focused policy implications.

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Section: Literature Reviewmentioning

confidence: 82%

Does distribution of energy innovation impact distribution of income: A quantile-based SDG modeling approach

Sinha¹,

Sengupta²,

Kalugina

et al. 2020

Technological Forecasting and Social Change

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show abstract

“…[14] The gini index and top 10% are broad measures for FEI compared to the top 1%, it captures the impact of a wider range of entrepreneurs who engage in FEI. A number of empirical studies con rm a less robust relationship between innovation and inequality, especially when the innovators are not in the top one percent or when broader measures of inequality like the top 10% and the gini index is used (Wlodarczyk, 2017;Aghion et al, 2019;Antonelli&Gehringer, 2017).…”

Section: Additional Findings and Discussionmentioning

confidence: 99%

“…Further, Acemoglu&Robinson(2012) assert that innovation (R&D activity) will not reach a level that can impact economic growth without the development of economic and political institutions. Wlodarczyk (2017) discovered that a higher gross domestic expenditure on R&D as a percentage of GDP increases inequality in Europe. While a high number of patent applications suppresses it.…”

Section: Empirical Reviewmentioning

confidence: 99%

Frontend Innovation And Top Income Inequality: Evidence From Emerging Markets

Eyisi

Kanwal²

2021

Preprint

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This paper contributes to the literature on income inequality, by extending existing models to examine the effect of front-end innovation (FEI) on top income inequality. We use a fixed effect panel regression, on annual country level data for twenty four emerging markets, over a twenty four (1995–2018) year period, and find an insignificant correlation between income inequality, and FEI. The instrumental variable estimates however, shows a significant association between measures of FEI and top income shares. Further, we confirm that FEI is weakly related with broad measures of income inequality. Our instrumentation strategy, and robustness checks, suggests that this correlation partly reflects a causality, from FEI to top income inequality. Finally, we show that FEI is necessary for the survival of new ventures, in the crucial early years. Overall, our findings confirm that FEI, is a significant determinant of increases, in entrepreneurial income share.

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“…The growth of income per capita and the distribution of income are the spotlight topics in economics, both in theoretical literature (Barro, 1991;Mankiw et al, 1992) and in empirical studies (Knowles, 2005;Lee, 2008;Fanta & Upadhyay, 2009;Yusuf et al, 2014;Włodarczyk et al, 2017;Nugraha et al, 2020;Syahnur et al, 2021;Seven, 2022). Many studies show that economic growth helps to reduce the poverty rate in many developing countries, however, income inequality arises as a social problem (Kumar & Mahadevan, 2011;Jalles, 2011;Yusuf et al, 2014;Tran et al, 2017;Sánchez-López et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

The relationship between income growth and inequality: Evidence from an Asian emerging economy

Tùng¹,

Bentzen²

2022

Economics &Amp; Sociology

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This paper aims to investigate the relationship between income growth and inequality in Vietnam. The study database was collected and calculated from 61 provinces in the period of 2006-2018. The economic equation is estimated with 3 types of data including the full sample, the North and the South regions, and six sub-economic regions. The empirical results present several important scientific contributions. First, the estimated results show the Kuznets curve hypothesis is confirmed in Vietnam when the relationship between income growth and inequality is presented by an inverted U-shaped curve. Second, the Kuznets curve does not occur in the provinces which have a high level of economic liberalization and a large private sector, as evidenced by the analysis of sub-samples. Economic integration is a progressive process provided foreign direct investment decreases inequality in most regions. Educational development helps to reduce inequality but this relationship is only found in the areas populated by ethnic minorities. The labour force has a positive and significant relationship to inequality, especially in regions with labour shortages, although this variable can even help reduce inequality in some sub-economic regions that have an abundance of labour. Tourism development and trade variables are considered to be the sources of inequality in lower development regions. The empirical results suggest that policymakers need to continuously reduce income inequality to support sustainable development in the future.

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Innovations and income inequalities – a comparative study

Cited by 13 publications

References 20 publications

Does distribution of energy innovation impact distribution of income: A quantile-based SDG modeling approach

Does distribution of energy innovation impact distribution of income: A quantile-based SDG modeling approach

Frontend Innovation And Top Income Inequality: Evidence From Emerging Markets

The relationship between income growth and inequality: Evidence from an Asian emerging economy

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