Relative Redistribution and Investment in OPEC Countries

Document Type : Research Article

Authors

1 Ph. D Candidate, Department of Economics, Faculty of Economics and Management, University of Sistan and Baluchestan, Zahedan, Iran

2 Associate Professor, Department of Economics, Faculty of Economics and Management, University of Sistan and Baluchestan, Zahedan, Iran

10.22084/aes.2024.29010.3676

Abstract

The Gini coefficient is the most common index for measuring income inequality. Taxes are considered an important instrument for improving income distribution. Calculating the Gini coefficient based on after-tax income can provide a more accurate picture of income distribution and its impact. Increasing investment also requires saving, which is influenced by income distribution. In this study, the impact of relative redistribution on investment in selected OPEC countries between 2001 and 2021 is examined using a generalized method of moments. According to the findings, the relative redistribution index and income inequality have a negative and significant impact on investment. It can be concluded that taxes and transfer payments as instruments of income distribution can stimulate investment. The relative redistribution of the more equitable can lead to higher investment. Therefore, providing an appropriate measure of income inequality can contribute to a better understanding and formulation of efficient policies for social and economic aspects.

Keywords

Main Subjects

References

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Journal of Applied Economics Studies in Iran
Volume 13, Issue 51
November 2024

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