CBE Research Seminar Series: Inequality and Growth: Evidence from Transition Economies

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YEREVAN, Armenia – On April 14th, the American University of Armenia (AUA) College of Business and Economics hosted a presentation led by Adjunct Lecturer Edgar Begrakyan about his research on the relationship between income inequality and economic growth in transition economies.

The evidence about this interplay is ambiguous and this study contributes to the existing empirical works with its findings. The novelty of the research is that it uses new comparable inequality dataset where measurement errors are less problematic than the previous ones, all while exploring this nexus for transition economies that were measured from 1990 to 2010. He use Gini indices (net and market) as a proxy for income inequality from the Standardized World Income Inequality database.

The estimations are made using fixed effects and random effects models in order to control for cross-country unobservable variables, conducting Hauseman tests to compare the fixed effects and random effects models from the point of view of efficiency and consistency. According to the tests, the fixed effects models are preferable and the estimated parameters show that an increase in income inequality has a significant negative relationship with economic growth.

The lecture was a part of the CBE Research Seminar Series aimed to host faculty presentations on their research findings, create a more vibrant research environment, and promote scientific collaboration among the AUA faculty.

Founded in 1991, the American University of Armenia (AUA) is a private, independent university located in Yerevan, Armenia and affiliated with the University of California. AUA provides US-style education in Armenia and the region, offering high-quality, graduate and undergraduate studies, encouraging civic engagement, and promoting public service and democratic values.