1945

Technical note on the relationship between diversification and inequality

Chapter 3 outlines the results of an analysis of the relationship between diversification and inequality based on a sample of 182 countries over the period 1998 to 2018. The data used in this study was primarily collected from UNU-WIDER and UNCTAD. Inequality data was drawn from the UNU-WIDER WIID Companion, which provides the most comprehensive adjusted income inequality statistics covering 201 economies from 1960 to 2021. Data covering 1998 to 2018 was considered based on the availability of export diversification and covariates data from UNCTAD. These covariates include GDP per capita (lagged term, in log), population size (in log), trade openness (expressed as the sum of imports and exports over GDP, in log), and human capital (expressed as a composite score, which captures the education, skills, and health conditions possessed by the population.

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