Exploring the heterogeneous impact of technological innovation on income inequality: Formulating the SDG policies for the BRICS-T economies

Abstract

The present research evaluates the effect of technological innovation distribution on the distribution of income using data from between 1992Q1 and 2019Q4 for the BRICS-T (Brazil, Russia, India, China, South Africa, and Turkey) nations. The BRICS-T nations present a good case for this research since this problem could be more widespread in developing countries with high prospects for economic growth. The quantile causality and quantile-on-quantile regression techniques have been used to evaluate this association. The research findings provide a range of outcomes from different countries, which can be grouped into three categories; (i) Technological innovation impacts income inequality positively. (ii) Technological innovation distribution impacts income inequality distribution negatively. (iii) The effects of technology innovation on income distribution are not evenly distributed. Significant policy ramifications are deduced that might inspire sustainable development plans in the BRICS-T nations. This research is one of the first studies to demonstrate a direct connection between income inequality and technological innovation across various quantiles within a country. The study also effectively shows how these techniques are utilized to deduce the policy ramifications of the Sustainable Development Goals (SDGs).