Boringa, Ruben (2022) Multiple Linear Regression Analysis of Macroeconomic variables behind Income Inequality in Hungary. Bachelor thesis, Global Responsibility & Leadership (GRL).
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Abstract
Income inequality has been associated with detrimental health, social and economic consequences. Currently income inequality is rising globally. Hungary has experienced a relatively mild increase in income inequality compared to other states. By understanding the impact of macroeconomic variables on income inequality across comparable states this paper aims to improve the understanding their dynamics. This study has therefore constructed several multiple linear regressions, aiming to understand the significant associations with different measures of income inequality and their directionality and strength. The macroeconomic variables used in this study include: Government Expenditure, Economic growth, Volume of Imports, Volume of Exports, Total investment and Capital Openness. The macroeconomic variables were identified through the construction of a Directed Acyclic Graph, based upon an analysis of academic literature. The only variable found to be significantly related to income inequality in Hungary is capital openness, which for every 1 increase in capital openness saw an increase of 0.027 (± 0.003) in the Gini coefficient. Across the other states assessed government expenditure, imports and investment were found to be significantly related to income inequality. As the results per state varied, this paper recommends local, tailored solutions for income inequality.
| Item Type: | Thesis (Bachelor) |
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| Name supervisor: | Kedari, V.L. |
| Date Deposited: | 09 Sep 2022 13:27 |
| Last Modified: | 09 Sep 2022 13:27 |
| URI: | https://campus-fryslan.studenttheses.ub.rug.nl/id/eprint/151 |
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