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R&D intensity and income inequality in the G7: 1870–2016

Sefa Awaworyi Churchill, Bin Peng, Russell Smyth () and Quanda Zhang

Scottish Journal of Political Economy, 2022, vol. 69, issue 3, 263-282

Abstract: We examine how R&D has contributed to income inequality in the Group of Seven countries from 1870 to 2016. Using newly developed panel data models that incorporate interactive fixed effects, we find that R&D is negatively associated with income inequality. Non‐parametric models that allow us to capture the time‐varying effect of R&D suggest that this average effect has been negative for most of this period. We find that economic growth and trade are important mechanisms through which R&D transmits to income inequality.

Date: 2022
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Handle: RePEc:bla:scotjp:v:69:y:2022:i:3:p:263-282