Student Author Information

Daniel FriedbergFollow

Access Type

Open Access

Presentation Type

Poster Presentation

Start Date

April 2019

Department

Economics

Abstract

The role of income inequality in relation to gross domestic product is of great importance in modern time. Income inequality is a pressing phenomenon in the fields of economics, politics, and sociology, while Gross Domestic Product is the benchmark statistic in measuring the health of any economy. But how well does income inequality serve as a predictor for the level of Purchasing Power Parity (PPP) GDP per capita within a nation? This cross-sectional study determines that the GINI Index has no significant statistical relationship with PPP GDP per capita level. While income inequality is a major economic variable that contributes to the economic stature of a nation, this study argues that the applied data set and methodology in cross-sectional study conceded an insignificant relationship. This study recognizes the complexity of income inequality and argues that it may contribute to economic growth in a number of indirect ways.

Faculty Mentor(s)

Dr. Laura Kicklighter

Rights Statement

The right to download or print any portion of this material is granted by the copyright owner only for personal or educational use. The author/creator retains all proprietary rights, including copyright ownership. Any editing, other reproduction or other use of this material by any means requires the express written permission of the copyright owner. Except as provided above, or for any other use that is allowed by fair use (Title 17, §107 U.S.C.), you may not reproduce, republish, post, transmit or distribute any material from this web site in any physical or digital form without the permission of the copyright owner of the material.

Share

COinS
 
Apr 10th, 12:00 PM

The Role of Income Inequality as a Predictor of Per Capita Gross Domestic Product

The role of income inequality in relation to gross domestic product is of great importance in modern time. Income inequality is a pressing phenomenon in the fields of economics, politics, and sociology, while Gross Domestic Product is the benchmark statistic in measuring the health of any economy. But how well does income inequality serve as a predictor for the level of Purchasing Power Parity (PPP) GDP per capita within a nation? This cross-sectional study determines that the GINI Index has no significant statistical relationship with PPP GDP per capita level. While income inequality is a major economic variable that contributes to the economic stature of a nation, this study argues that the applied data set and methodology in cross-sectional study conceded an insignificant relationship. This study recognizes the complexity of income inequality and argues that it may contribute to economic growth in a number of indirect ways.