Economic development and income inequality

Role in country resistance to Covid-19

Bibliographic Data

ID2434779
AuthorsTetyana Vasylieva (0000-0003-0635-7978, Silesian University of Technology), Tetiana Vasylieva (Silesian University of Technology), Alina Vysochyna (0000-0001-9490-1026, Silesian University of Technology), Bálint Filep (0000-0003-3955-6818, Silesian University of Technology)
Year2022
Volume15
Issue4
Pages286-302
Publication date2022-12-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEconomics & Sociology (JOURNAL)
Journal identifiersISSN: 2071-789X • E-ISSN: 2306-3459
PublisherCentre of Sociological Research, Szczecin, Poland (PUBLISHER • PL)
DOI10.14254/2071-789x.2022/15-4/14
OpenAlexW4320028505
LanguageEN
Citations received2
References cited57

The pandemic of coronavirus disease (COVID-19) significantly slowed economic development and exacerbated income inequality. However, the scale of this destructive influence varies considerably among countries. Thus, the purpose of this study is to identify changes in causality patterns between economic development and income inequality due to COVID-19. To fulfill the task, an Index of Economic Development (IED) is developed using the multivariate analysis tools, Cronbach's alpha and the Fishburn formula. The Gini index was chosen as a core proxy of social inequality. The research covers a sample of 15 European countries. The period of the analysis is 2000-2021. A set of regression equations are constructed to determine the relationship between economic development and income inequality in the studied countries. A dummy variable is integrated into the equation to determine the impact of the coronavirus disease (COVID-19). Modeling is carried out on the panel data. The most acceptable functional form of the regression model is clarified based on the Hausman test. Modeling results make it possible to identify patterns of changes in the impact of income inequality on economic development, and vice versa. The change in their causality due to COVID-19 is substantiated

Demographic economics · Development economics · Econometrics · Economic inequality · Economics · Index (typography) · Inequality · Proxy (statistics) · Statistics · Banking, Crisis Management, COVID-19 Impact · Business and Economic Development · Labor Market and Education · Mathematics

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