Author:
GABRIEL YAU JIA-JUN,TAN SIOW-HOOI
Abstract
This study re-investigates the presence of the Kuznets curve in the context of Malaysia, by
employing an autoregressive distributed lag (ARDL) approach. We seek to examine the
non-linear impacts of economic growth on income inequality by investigating the existence of a second turning point to the relationship. Furthermore, we also assess the impacts of information and communication technology (ICT) (through internet, mobile, and broadband usage) on income inequality, besides the determinants of income inequality which have been extensively studied within the framework. This endeavour leveraged a time series analysis whereby the data was employed from the time period of 1970–2018. Our estimation results support the S-curve hypothesis that relates economic growth to inequality starting from the back portion of the inverted U-shaped curve. Our results confirm that ICT can actually be part of an active economic policy aiming to reduce existing income inequalities.
Publisher
Universiti Putra Malaysia
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