THE EFFECTS OF EXPORTS, PUBLIC DEBT, AND DEVELOPMENT ON INCOME INEQUALITY uri icon

abstract

  • Classical economics and most modernization theorists hold that a curvilinear relationship exist between income inequality and development level. In this article that relationship is tested. In addition, it is hypothesized that exports and debt as percentages of gross domestic product increases individual income inequality. Regression analyses with controls for development and time were used to test these relationships (N=28 at two time periods). To test these hypotheses with additional data a panel crosssection design was used with data for countries where it is not available a two separate times (N=37 and N=46). The results do not provide evidence to support a curvilinear relationship between development and income distribution when controls for dependency are included in the regression equation. The results from all six regressions presented support the hypothesis that exports enhance income inequality. Moreover, a covariant analysis indicates that exports effect inequality significantly more in undeveloped countries than in developed countries. It is concluded that for less developed countries pursuing exportoriented production, income does not become more evenly distributed at later stages of development. Copyright 1985, Wiley Blackwell. All rights reserved

published proceedings

  • Sociological Quarterly

author list (cited authors)

  • Prechel, H.

citation count

  • 10

complete list of authors

  • Prechel, Harland

publication date

  • January 1985