Impact of economic growth on income distribution in East Asian emerging economies

Abstract: Income inequality is one of the main topics that worried economists in recent decades. It became more popular, especially starting with the integration process of East Asian economies’ to the global market as a result of the globalization process. And there are lots of approaches on economic growth’s positive and negative effects on income distribution. Its impact on income distribution has been tested in the essay with two models between 2000 and 2018. In the first model, 6 variables for 7 East Asian emerging economies have been selected, and in the second model, 4 variables for only China has been selected and tested. As a result of the regressions, some indicators of economic growth have a positive impact on income distribution and several of them has affected positively. And one of the main variables results also controversial. Although, inward FDI played an important role in an increase in income inequality in 7 Asian miracle economies, its effect on income distribution was positive in China and resulted in a decrease in the Gini coefficient which means a decrease in income inequality.