Trends Of Income Inequality And Its Effects On Society And Market Development Harvard Case Solution & Analysis

Trends Of Income Inequality And Its Effects On Society And Market Development Case Study Help

3.1 Research Design:

Based on the purpose of the study to analyze the increased inequality in the developing nations;the study includes the development of research questions, determination of the data collection tool, and the data analysis. Due to the peer-reviewed concept of the study, the analysis of the data is expected to be based on the data retrieved from the primary resources. Such resources would serve as a data collection tool; whereas, the representation of data by such resources would be used for the analysis.

3.1.1 Hypothesis:

H1: An increase in the financial developmentleads to a decrease inincome inequality.

H2: Political and economic systemspositively impact the economic growth and income inequality.

H3:An increased urban population is directly associated with anincreasedincome inequality among developed and developing economies.

3.3 Data Collection:

For the determination and evaluation of the changing trends of income inequality in the emerging markets and their potential impact on economic growth; the collection of data would be from the primary resources i.e. a summary of the studies conducted so far on income inequality and its impact. Additionally, the data related to the household survey of emerging markets would be obtained from the Development Research Group Data, World bank. The data evaluation factors would mainly include the Gini index of the past ten years.

3.4 Data Analysis:

Based on the collection of the data, the analysis of the data collected would be analyzed through the useof graphical representation of the GINI index, poverty index of emerging economies of past 10 years and health and education index.The analysis of the data would be based on the increase or decrease of  particular trends, influencing the economic growth of particular economies across the globe.

4. Discussion

With a noticeable increase in financial development; income equality decreases. This is primarily based on the policies of a state, which make sure of the achievement redistribution of the economic development among the respective population of the state. Specifically, the achievement redistribution is concerned with the distribution at the lowestlevel of national income, influencing the growth of the economy. (Thang Cong Nguyen, 2019)The research suggested that the probability of available opportunities decreased with an increased inequalityto the non-beneficial people in the emerging societies,resulting in the productive outcomes of the labor market. (Cingano, 2014)

Additionally, many of the empirical studies determined a nonlinear correlationbetween financial development and income inequality,confirming the notion that the effect of financial development in association with income disparity varies based on the financial development level. (Thang Cong Nguyen, 2019) In contradiction, the key determinants of the income distribution within a state, tend to demonstrate consistency with social inhomogeneity, historical factors and most importantly political regime. (Kemp-Benedict, 2011)

5. Conclusion:

The conclusion statement of this study will be based on the report analysis..................................

 

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