Economic Freedom and Income Inequality: Evidence from a Panel of Global Economies— A Linear and a Non‐Linear Long‐Run Analysis
Journal article
Authors | Apergis, Nicholas and Cooray, Arusha |
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Abstract | This study employs panel data from 138 countries (with unbalanced time frameworks) to investigate the relationship between economic freedom and income inequality. Both linear and non‐linear cointegration methodologies are used to identify a long‐run equilibrium relationship between: (i) the overall Economic Freedom of the World index and income inequality, and (ii) the major areas of the index and income inequality. The linear long‐run parameter estimates document that the association turns out to be negative, while the non‐linear long‐run parameter estimates illustrate that above a threshold point the association between economic freedom and income inequality is negative, while below this threshold point, the association turns out to be positive. The empirical findings survive a number of robustness tests, such as alternative measures of income inequality. |
Keywords | Economic freedom; Income inequality; Linear long-run; Nonlinear ;long-run |
Year | 2015 |
Journal | Manchester School |
Publisher | Wiley |
ISSN | 1463-6786 |
Web address (URL) | http://hdl.handle.net/10545/623370 |
http://creativecommons.org/licenses/by-nc-nd/4.0/ | |
hdl:10545/623370 | |
Publication dates | 06 Nov 2015 |
Publication process dates | |
Deposited | 24 Jan 2019, 16:13 |
Accepted | 03 Sep 2015 |
Contributors | Northumbria University and University of Nottingham Malaysia |
File | File Access Level Open |
File | File Access Level Open |
File | File Access Level Open |
https://repository.derby.ac.uk/item/94w36/economic-freedom-and-income-inequality-evidence-from-a-panel-of-global-economies-a-linear-and-a-non-linear-long-run-analysis
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