Is There a Kuznets' Process in Southeast Asia?

Abstract

Relatively little is known about the determinants of inequality in Southeast Asia. This paper fills this void by comprehensively testing Kuznets' hypothesis for Southeast Asia. We estimate both unconditional and conditional Kuznets' curves using panel data for 8 countries. The analysis suggests the existence of a Kuznets' curve with respect to per capita income; the path of inequality is non-linear with respect to economic development. There is no evidence of a Kuznets curve with respect to non-agricultural employment. There is some evidence in terms of urbanization, though this is not robust. There is robust evidence on the role of national governments and education in shaping the path of inequality in the region. Government involvement reduces inequality. Education appears to have a non-linear effect on inequality.

Convergence and Intercountry Inequality within Asia: A Combined Approach Using Decomposition Techniques and Transitional Dynamics Analysis

“…It is worth noting that although many scholars have conducted research on convergence and inequality for Asia, most of the studies only focus on a particular region without providing a full analysis of all five regions (e.g. Sato and Fukushige, ; Cook and Pincus, ; Henderson et al ., ; Abdullah et al ., ).…”