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Income inequality and economic growth: Panel data in South East Asia

(A thesis submitted in partial fulfilment of the requirements for the degree of MASTER OF ARTS IN DEVELOPMENT ECONOMICS, VIETNAM – THE NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS)

By Nguyen Le Phuong Linh (VNP 20)

Academic Supervisor: Dr. Tran Tien Khai


This study has examined the impact of different levels of economic growth toward income inequality, applying the Kuznets reverted U-shape model and the Tribble S-curve model by employing the annual panel dataset from 1990 to 2012 at the country-level in the Southeast Asia. New econometric technique Driscoll and Kraay is handled with the panel regression technique to correct for the autocorellation, heteroskedasticity and cross-section dependence. The analysis finding reveals the significant relationship between income inequality and economic growth. Furthermore, the empirical evidence also provides support for the existence of Kuznets inverted-U as well as inverted S-shaped curve in eight countries in Southeast Asia.

Keywords: Income inequality, economic growth, Kuznets curve, S-curve, Southeast Asia, Panel data.

Abbreviations: WB – World Bank, OPEC - Organization of Petroleum Exporting Countries, GDP – Gross domestic product

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