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Costs of economic growth: new insights on wealth and income inequalities in the post-communist countries
Journal article   Peer reviewed

Costs of economic growth: new insights on wealth and income inequalities in the post-communist countries

M. Mesut Badur, Kazi Sohag, Shawkat Hammoudeh and Gazi Salah Uddin
Post-communist economies
17 Jul 2023
DOI: https://doi.org/10.1080/14631377.2023.2236870
Featured in Collection :   UN Sustainable Development Goals @ Drexel

Abstract

economic freedom Income inequality post-communist spatial dependency wealth inequality
We scrutinise the role of institutional, market, and financial freedoms within the occurrence of wealth and income inequalities, thus attempting to corroborate the Kuznets curve hypothesis by using general and decomposed measures. To this end, we apply an auto-regressive fixed effect framework with Driscoll Kraay standard errors to analyse the panel time series data for twelve Post-Communist economies. Our empirical results highlight that the overall economic growth provides two different implications for the income and wealth inequalities. Economic growth fosters income inequality up to a threshold point, afterwards it declines with further economic growth, thereby validating the Kuznets curve hypothesis. The decomposed analysis confirms that further economic growth surpassing the threshold level re-distributes income from the top 10% class to the bottom 50% and middle 40% classes.

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8 Record Views
5 citations in Web of Science
5 citations in Scopus

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UN Sustainable Development Goals (SDGs)

This publication has contributed to the advancement of the following goals:

#1 No Poverty
#10 Reduced Inequalities
#8 Decent Work and Economic Growth
#9 Industry, Innovation and Infrastructure

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Collaboration types
Domestic collaboration
International collaboration
Web of Science research areas
Economics
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