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A Reconsideration of Kuznets Curve across Countries: Evidence from the Co-summability Approach

Shinhye Chang (), Matthew Clance (), Giray Gözgör () and Rangan Gupta ()
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Shinhye Chang: Department of Economics, University of Pretoria, Pretoria, 0002, South Africa

No 201970, Working Papers from University of Pretoria, Department of Economics

Abstract: This study re-examines the existence of an inverted U-shaped relationship between economic growth and income inequality using advanced time series techniques, which enable analyzing nonlinear long-run relationships among stochastic processes. Applying the concept of summability, balancedness, and co-summability on a sample of 55 countries from 1980 to 2010, we find no evidence in support of the nonlinear long-run relationship economic growth and income inequality.

Keywords: income distribution; economic development; summability; balancedness; co-summability; cross-country studies (search for similar items in EconPapers)
JEL-codes: O47 O15 C23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-gro and nep-ore
Date: 2019-09
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