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Title Innovations, Income Inequality and Economic Growth Nexus: A Cross Country Analysis

Author(s) Hamza Mubeen

Abstract Due to complexity of relationship between innovation, income inequality and economic growth, the choice of measure is to be taken in this study of their interaction is very important. This study explains the effect of innovation on income inequality and impact of both innovation and income inequality on economic growth. In this study we have three panel of high, middle and low income countries, each panel have 20 countries with time frame of 1996 to 2018. The innovation was measured by two proxies i.e. Research and Development (R&D) % of GDP and Numbers of Patent Applications (PA), whereas income inequality was measured by GINI index and Economic Growth(GDP)was measured constant 2010 US$, all the data was taken from world development indicators (WDI) 2018. Generalized Method of Moment (GMM) model was used in this study to analysis the results. The results of the study indicated that in high income countries innovation play important role in economic growth and reduce in income inequality. In middle income countries innovation contribution is very low and innovation impact on income inequality is insignificant, while in low income countries innovation have good impact on economic growth and innovation impact on income inequality also have significant results. Income inequality of all high, middle and low income countries have negative impact on economic growth. Suggestion of this study is to increase the investment on R&D which reduced the income inequality and also help to gain the sustainable growth rate.

Type Thesis/Dissertation

Faculty Management Sciences

Department Economics

Language English

Publication Date 2021-02-26

Subject Economics

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