Influence of Prosperity on income distribution in selected countries

Document Type : Review Article

Authors

1 Master of science of industrial engineering, Department of Economic and Social Systems Engineering, Science and Research, Islamic Azad University brand, Tehran

2 Department of Economics. Firoozkooh Branch, Islamic Azad University, Firoozkooh, Iran

Abstract

The main purpose of this article is to review the comparative analysis of the effects of the prosperity index on income distribution in the selected middle income and high income countries. This paper is an applied, causal and deductive research. The results of the fixed effects model show that the prosperity index has a negative and significant effect on the Gini coefficient (as an index for income distribution) in the selected countries during the period 2016-2009 . The results also declare that the prosperity index has a stronger effect on the Gini coefficient among selected middle income countries compared to the high income countries. This result asserts the weaker prosperity atmosphere in the middle-income countries, and also shows that any improvement in prosperity index has a bigger effect on income distribution compared to the high income countries. Prosperity has a big role in economic performances because it stimulates intelligence, ability and motivation resulting in higher productivity, economic growth and better income distribution. While, sadness and pain cause indifference and indolence, thus reduces productivity. Results also show that the size of the government and the unemployment rate has positive and significant effects, and ICT has a negative and significant effect on the Gini coefficient (as an indicator for income distribution). Moreover, the results conclude that the government size, unemployment rate, and the ICT have stronger effects on the Gini coefficient the middle income countries compared to the high income countries.

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References

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