Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/328173 
Year of Publication: 
2024
Citation: 
[Journal:] Review of Economic Analysis (REA) [ISSN:] 1973-3909 [Volume:] 16 [Issue:] 4 [Year:] 2024 [Pages:] 423-441
Publisher: 
International Centre for Economic Analysis (ICEA), Waterloo (Ontario)
Abstract: 
The study examined the impact of structural transformation to inequality using a panel of low- and middle-income countries from 1996 - 2018. The system generalised method of moments was used to determine the effect of value-added of each sector to income inequality for the countries in the study. Increase in value-added for the mining and construction sectors reduces inequality whilst inequality increased with an increase in value-added for the agriculture and manufacturing sectors. Thus, for the countries in this study mining and construction driven structural transformation has an inequality reducing effect whereas there is a possibility that further structural transformation has no effect to reducing inequality. This implies that there is a probability of an increase in inequality due to further structural transformation. The implication for policy is a consideration of a channel of structural transformation that is suitable for a specific economy.
Subjects: 
inequality
structural transformation
change
sector
countries
value-added,development
system-GMM
JEL: 
O11
O15
O53
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

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