Income inequality and economic complexity in foreign countries: is there a relationship?

Pospelova E.A.1, Kazakova M.V.2,1
1 Институт экономической политики имени Е.Т. Гайдара (Институт Гайдара)
2 Российская академия народного хозяйства и государственной службы при Президенте Российской Федерации (РАНХиГС)

Journal paper

Journal of International Economic Affairs (РИНЦ, ВАК)
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Volume 8, Number 2 (April-June 2018)

Citation:

Indexed in Russian Science Citation Index: https://elibrary.ru/item.asp?id=35255503
Cited: 6 by 07.12.2023

Abstract:
The main subject of research in the 1990s was the analysis of inequality as a fundamental factor of economic growth and the search for new growth models that take into account inequality in various aspects. On country level the literature reveals a positive relationship between economic complexity of countries and equality of income: the wealthier the economy is also characterized by lower levels of income inequality. This article analyzes the international experience of assessing the relationship between inequality in income distribution and the complexity of the economies of different countries. The authors conclude that when comparing data on economic complexity and sectoral data on wage inequality at the inter-country level, researchers find that industrialized countries with high per capita GDP have low wage inequality by sector. As expected, the review conducted in this article will have not only fundamental, but also significant practical value, including the evaluation of such a relationship for Russia.

Keywords: economic growth, production, export, income inequality, economic complexity

JEL-classification: F13, O40, O47

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