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Title of Journal: Soc Indic Res

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Abbravation: Social Indicators Research

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Springer Netherlands

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DOI

10.1016/j.arabjc.2015.08.015

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1573-0921

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The Impact of Country Risk on Income Inequality A

Authors: ChiChuan Lee ChienChiang Lee
Publish Date: 2016/12/23
Volume: 136, Issue: 1, Pages: 139-162
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Abstract

This paper investigates the influence of country risks including economic financial and political risks on income inequality for a broad sample of 110 countries Our empirical results reveal that higher economic and political risks generally lead to higher inequality Lower income country appears to have higher income inequality Furthermore with the consideration of the nonmonotonic effect of country risk the improvement of income distribution is only sustainable dynamically after a certain threshold level of country risk has been brought down Policymakers should improve the level of country stability by exploring the benefits of country risk reduction in order to improve income distribution

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