Democratization and inequality: Empirical evidence for the Organisation for Economic Co-operation and Development member countries

Ille, Sebastian, Risso, Adrian and Sanchez Carrera, Edgar J (2017) Democratization and inequality: Empirical evidence for the Organisation for Economic Co-operation and Development member countries. Environment and Planning C: Politics and Space, 35 (6). pp. 1098-1116. ISSN 2399-6544

Abstract

The correlation between democracy and income inequality, as well as the direction of causation is still debated. In this paper, we conduct a dynamic panel data analysis for all 34 Organisation for Economic Co-operation and Development member states over the period 1960–2012 and illustrate a nonmonotonic relationship between inequality and democracy, as well as test the direction of causation by employing a noncausal homogeneity test in a panel Granger framework and the Dumitrescu and Hurlin noncausal heterogeneity test. We provide an explanation for the inverted U-shaped relation. In addition, we illustrate individual regression results for 12 exemplary Organisation for Economic Co-operation and Development countries and provide a concise illustration of the economic and political changes to which countries have been subjected while elaborating the effect of the underlying policies on democracy and income equality.

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Official URL:	https://doi.org/10.1177/0263774X16684521
Item Type:	Article
Disciplines:	Social Science > Economics
Depositing User:	Sebastian Ille
Date Deposited:	10 Nov 2023 13:15
Last Modified:	16 Aug 2024 13:27
URI:	https://nul.repository.guildhe.ac.uk/id/eprint/355

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