Economics at your fingertips  

The Saving-Investment Gap And Income Inequality:Evidence From 16 Countries

Mohsen Bahmani-Oskooee (), Scott Hegerty () and Harvey Wilmeth ()
Additional contact information
Harvey Wilmeth: University of Wisconsin-Milwaukee, USA

Journal of Developing Areas, 2012, vol. 46, issue 2, 145-158

Abstract: Previous studies that analyzed income inequality mostly concentrated on identifying microeconomic determinants such as income, social factors (family structure, employment, or age distribution), or factor endowments; or such macroeconomic determinants as the exchange rate, economic openness or the black market premium. These studies also relied upon cross-section estimates in their assessments. In this paper, we introduce the "saving-investment" gap, which measures whether the need for financing is unmet, as another determinant of income inequality. We then apply time-series techniques in a study of 16 countries. Using the "bounds testing" cointegration method, in which variables in a given model can be stationary, non-stationary, or a combination of the two, we find varying results across countries. While these results highlight the need for further country-specific research, they indicate the benefits that external financing can provide.

Keywords: Gini Coefficient; Saving-Investment Gap; Bounds Testing; Time Series (search for similar items in EconPapers)
JEL-codes: F41 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link) ... bahmani-oskooee.html

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Journal of Developing Areas from Tennessee State University, College of Business Contact information at EDIRC.
Bibliographic data for series maintained by Abu N.M. Wahid ().

Page updated 2019-06-05
Handle: RePEc:jda:journl:vol.46:year:2012:issue2:pp:145-158