Relations between income inequality, economic growth and poverty threshold: new evidences from EU countries panels
This paper analyses the relationship between the following indicators: income inequality, gross domestic product, risk of poverty threshold and median equivalized net income for a panel of 28 countries of European Union (EU) over the period 2005-2016. Two theoretical regression models, a linear and...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Vilnius Gediminas Technical University
2020-02-01
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| Series: | Technological and Economic Development of Economy |
| Subjects: | |
| Online Access: | https://journals.vgtu.lt/index.php/TEDE/article/view/11335 |
| _version_ | 1831645939922632704 |
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| author | Georgeta Soava Anca Mehedintu Mihaela Sterpu |
| author_facet | Georgeta Soava Anca Mehedintu Mihaela Sterpu |
| author_sort | Georgeta Soava |
| collection | DOAJ |
| description | This paper analyses the relationship between the following indicators: income inequality, gross domestic product, risk of poverty threshold and median equivalized net income for a panel of 28 countries of European Union (EU) over the period 2005-2016. Two theoretical regression models, a linear and a quadratic one, are used to estimate the influence on income inequality of the other three indicators. Empirical estimations, using panel data techniques on three different data panels, confirm the Kuznets hypothesis that income inequality tends to increase with early economic development and tends to decrease when a country reaches a certain level of development. We found that for emerging EU countries, income inequality has a growing tendency with a positive economic growth and maybe reduced by increasing risk of poverty threshold or median equivalized net income. For highly developed EU countries the situation is completely opposite. At EU level, the influence of gross domestic product on income inequality is strongly determined by its trend in the highly developed EU countries, while the influence of risk of poverty threshold and median equivalized net income on income inequality is strongly determined by their trend in the emerging EU countries.
First published online 19 November 2019 |
| first_indexed | 2024-12-19T13:45:43Z |
| format | Article |
| id | doaj.art-90a8a9d738bd4c98b58565a647bb95d4 |
| institution | Directory Open Access Journal |
| issn | 2029-4913 2029-4921 |
| language | English |
| last_indexed | 2024-12-19T13:45:43Z |
| publishDate | 2020-02-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | Technological and Economic Development of Economy |
| spelling | doaj.art-90a8a9d738bd4c98b58565a647bb95d42022-12-21T20:18:53ZengVilnius Gediminas Technical UniversityTechnological and Economic Development of Economy2029-49132029-49212020-02-0126210.3846/tede.2019.11335Relations between income inequality, economic growth and poverty threshold: new evidences from EU countries panelsGeorgeta Soava0Anca Mehedintu1Mihaela Sterpu2Department of Statistics and Economic Informatics, Faculty of Economics and Business Administration, University of Craiova, Craiova, RomaniaDepartment of Statistics and Economic Informatics, Faculty of Economics and Business Administration, University of Craiova, Craiova, RomaniaDepartment of Mathematics, Faculty of Sciences, University of Craiova, Craiova, RomaniaThis paper analyses the relationship between the following indicators: income inequality, gross domestic product, risk of poverty threshold and median equivalized net income for a panel of 28 countries of European Union (EU) over the period 2005-2016. Two theoretical regression models, a linear and a quadratic one, are used to estimate the influence on income inequality of the other three indicators. Empirical estimations, using panel data techniques on three different data panels, confirm the Kuznets hypothesis that income inequality tends to increase with early economic development and tends to decrease when a country reaches a certain level of development. We found that for emerging EU countries, income inequality has a growing tendency with a positive economic growth and maybe reduced by increasing risk of poverty threshold or median equivalized net income. For highly developed EU countries the situation is completely opposite. At EU level, the influence of gross domestic product on income inequality is strongly determined by its trend in the highly developed EU countries, while the influence of risk of poverty threshold and median equivalized net income on income inequality is strongly determined by their trend in the emerging EU countries. First published online 19 November 2019https://journals.vgtu.lt/index.php/TEDE/article/view/11335income inequalityGINI indexeconomic growthrisk of poverty thresholddata panelregression model |
| spellingShingle | Georgeta Soava Anca Mehedintu Mihaela Sterpu Relations between income inequality, economic growth and poverty threshold: new evidences from EU countries panels Technological and Economic Development of Economy income inequality GINI index economic growth risk of poverty threshold data panel regression model |
| title | Relations between income inequality, economic growth and poverty threshold: new evidences from EU countries panels |
| title_full | Relations between income inequality, economic growth and poverty threshold: new evidences from EU countries panels |
| title_fullStr | Relations between income inequality, economic growth and poverty threshold: new evidences from EU countries panels |
| title_full_unstemmed | Relations between income inequality, economic growth and poverty threshold: new evidences from EU countries panels |
| title_short | Relations between income inequality, economic growth and poverty threshold: new evidences from EU countries panels |
| title_sort | relations between income inequality economic growth and poverty threshold new evidences from eu countries panels |
| topic | income inequality GINI index economic growth risk of poverty threshold data panel regression model |
| url | https://journals.vgtu.lt/index.php/TEDE/article/view/11335 |
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