Revisiting Kuznets Hypothesis: A Time Series and Panel Data Approach
Bangladesh Development Studies, Vol. 30, Nos. 3-4, pp. 89-112, 2004
32 Pages Posted: 26 Aug 2008 Last revised: 2 Jan 2012
Date Written: 2004
Significant impact of economic growth on poverty alleviation is eroded by high income inequality. This article revisits Kuznets Hypothesis which suggested that inequality and growth have an inverted U shaped relationship. This article differs from previous articles on this subject, by being broader in scope although remaining exploratory in nature. The article uses log quadratic model and level quadratic model, autoregressive time series analysis and panel analysis, expands the database by covering a time period 1963-1999, and a comparative time-series analysis using the augmented D-S inequality dataset (EHII2.3) and UTIP-UNIDO dataset as proposed by James K. Galbraith and Hyunsub Kum.
Keywords: Kuznets Curve, UTIP UNIDO, EHII2.3, Income Inequality
JEL Classification: O1
Suggested Citation: Suggested Citation