Assessing the Impact of Income Inequality on the Growth of National Economies: Bayesian Approach
https://doi.org/10.25205/2542-0429-2021-21-4-47-60
Abstract
The article assesses the relationship between income inequality and economic growth rates. We believe that such an assessment will help to define the prerequisites and conditions for the transition of economic growth rates into qualitative determinants. In the study we consider the net national income as an indicator of economic growth. The novelty of the study is in the use of the Bayesian approach in order to assess the interdependence of inequality in countries with different income levels and their economic growth rates. The assessment tool is the original Bayesian econometric model with variation of probable determinants. In the context of the study, the Bayesian approach reflects the interaction between the growth rates of net national income and inequality indicators for different income groups of countries in accordance with the World Bank classification. Empirical analysis of 164 countries data show a positive relation for low-income countries
Keywords
Supporting agencies: The article was prepared in a framework of the project “The rates and quality of growth of national economies: determination in the era of neoglobalization”, funded by the Science Committee of the Min-istry of Education and Science of the Republic of Kazakhstan (grant no. AP08856289).
About the Authors
A. I. Nussupov
Economic Research Institute
Kazakhstan
Kazakhstan
Aset I. Nusupov, PhD Economics, leading researcher of the grant project АР08856289
Scopus Author ID 57202387862
Nur-Sultan
N. А. Baizakov
Economic Research Institute
Kazakhstan
Kazakhstan
Nauryz A. Baizakov, Ms Economics, researcher of the grant project АР08856289, leading expert of the world economy research center
SPIN 8026-3578, Author ID 914330, Scopus Author ID 56896138600
Nur-Sultan
D. B. Shymyrbek
Economic Research Institute
Kazakhstan
Kazakhstan
Daulet B. Shymyrbek, Master of Public Policy, leading expert of the center for scientific economic expertise and research
Nur-Sultan
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For citations:
Nussupov A.I., Baizakov N.А., Shymyrbek D.B. Assessing the Impact of Income Inequality on the Growth of National Economies: Bayesian Approach. World of Economics and Management. 2021;21(4):47-60. (In Russ.) https://doi.org/10.25205/2542-0429-2021-21-4-47-60
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