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Nonlinear Relationship between Schumpeterian Innovation and Income Distribution in Developing Countries
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Zahra Najafi *1   , Kaveh Parandin2 |
1- Department of Economics, Payame Noor University, Tehran, Iran , najafi@pnu.ac.ir
2- Department of Accounting, Payame Noor, University, Tehran, Iran |
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Abstract: (8 Views) |
In any country, fair distribution of income is considered one of the main components of social justice, and identifying the factors affecting it is of great importance in achieving this goal. The purpose of this study is to investigate the existence of a nonlinear relationship (U-shaped relationship) between relative innovation and the Gini coefficient in developing countries using the mixed data method, in the period 2009-2024. According to the results obtained, with an increase in the level of innovation, which is considered as an index of the number of patent applications in each country, the Gini coefficient first decreases, and when it reaches a minimum level, the Gini coefficient increases with increasing innovation. Other variables under study include the size of the government and trade, which have negative and positive signs, respectively. On the other hand, the variable of government size has a negative and significant sign, indicating that as the share of government expenditure in the gross domestic product of countries increases, the Gini coefficient decreases and income distribution improves. Another variable under study is the trade index, which has a significant effect on the Gini coefficient with a coefficient of 0.011, and as the level of trade in these countries increases, income equality increases. The effect of other variables under study, including inflation rate and unemployment rate, on the Gini coefficient is not significant. |
Article number: 8 |
| Keywords: Innovation, Income Distribution, Panel Data, Developing Countries |
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Full-Text [PDF 744 kb]
(3 Downloads)
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Article type: Research |
Subject:
Special
Received: 2025/09/8 | Accepted: 2025/12/16 | Published: 2026/08/23
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