The impact of economic growth and international economy on income inequality: Evidence from method of moments quantile regression

Abstract

Abstract the relationship between inequality and economic growth and international economy is one of the most studied topics and is seen as a major problem to be solved. what is new is that researchers and policy makers have shifted their attention from conventional inequality at a single mean coefficient to divisible inequality at levels of its value. In this context, our article contributes to examine the link between inequality and economic growth by taking into account the international economic relations of three panels of countries grouped according to their income levels during the period 1990 to 2020. The study used an econometric quantile regression model (Method of moments quantile regression) to examine these variables at different levels of inequality. The estimates for quantiles 0.05 to 0.95 in 135 countries yielded the following findings: The empirical results showed heterogeneous effects of the international economy, economic growth and financial development on inequalities between different quantiles in each country of the three panels (HIC, MIC, LIC).Our findings have several implications and offer valuable insights for policy makers to address inequality based on financial development or/and economic growth or/and international economic variables