The purpose of this paper is to investigate the correlation between income inequality and economic growth in a cross-section of 90 countries from 2002 to 2006. The controversial Kuznets Hypothesis, the economic model that hypothesizes the relationship between inequality and per capita income is an inverted U-shaped curve, is scrutinized and investigated to consider its viability and accuracy. A multiple linear regression model is estimated and the viability of the regression model is supported by several statistical tests. Based on the estimated model, a negative correlation between growth and inequality has been found.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:hj-23650 |
| Date | January 2013 |
| Creators | Jamal, Mahmoud, Sayal, Omar |
| Publisher | Internationella Handelshögskolan, Högskolan i Jönköping, IHH, Economics, Finance and Statistics, Internationella Handelshögskolan, Högskolan i Jönköping, IHH, Economics, Finance and Statistics |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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