Original scientific paper
https://doi.org/10.3935/rsp.v28i2.1764
Is There a Link between Income Inequality and Economic Growth in the Balkans? Testing the Kuznets Hypothesis
Ivana Velkovska
; Faculty of Economics, Ss Cyril and Methodius University, Skopje, Republic of North Macedonia
Borce Trenovski
orcid.org/0000-0002-3630-9486
; Faculty of Economics, Ss Cyril and Methodius University, Skopje, Republic of North Macedonia
Kristijan Kozheski
orcid.org/0000-0002-8182-1219
; Faculty of Economics, Ss Cyril and Methodius University, Skopje, Republic of North Macedonia
Abstract
This paper makes an effort to test the Kuznets hypothesis in selected Balkan countries by applying panel data regression analysis for the period 2001-2012. We analyzed the following Balkan countries: 1) EU member states – Croatia, Slovenia, Greece and Bulgaria and 2) EU candidate states – North Macedonia, Bosnia and Herzegovina, Albania and Serbia. The results indicate the existence of the Kuznets curve that is flatter at initial stages of economic development, with income inequality declining at later stages of economic growth. In addition, the EU membership is correlated to lower income inequality, indicating better redistribution efforts in these countries compared to the EU candidate countries.
Keywords
income inequality; Kuznets curve; Gini index; panel data model
Hrčak ID:
261367
URI
Publication date:
25.7.2021.
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