The Impact of Urbanization on Income Distribution with Emphasis on the Kuznets’ Theory (in Persian)

Saber Zamani-Shabkhaneh () and Nader Mehregan
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Saber Zamani-Shabkhaneh: Iran
Nader Mehregan: Iran

The Journal of Planning and Budgeting (٠صلنامه برنامه ریزی و بودجه), 2013, vol. 18, issue 3, 3-19

Abstract: Theoretical bases and previous studies hold that lots of factors including inflation rate, tax revenue, urbanization growth, economic growth and other variables influence on income distribution. Increasing rate of urbanization in recent decades and the importance attached to the socioeconomic aspects of income distribution make it imperative to survey the effects of urbanization on income distribution in the country. This article mainly tries to evaluate the impact of urbanization on income distribution in Iran through using econometric method and testing Kuznet's inverted U theory during the period 1972-2010. This study showed that the effect of urbanization on income distribution is in the form of a nonlinear relationship, depending on industrialization process and consequences of urbanization. The findings indicated that urbanization firstly reduces the economic inequality yet, after a certain while, it increases the economic inequality. Moreover, this study confirms Kuznets' inverted U theory regarding the relationship between economic growth and income distribution.

Keywords: Income Distribution; Economic Growth; Urbanization; Economic Justice; Kuznets\' Theory (search for similar items in EconPapers)
Date: 2013
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