The impact of economic discontent on income distribution: the case of selected fragile economies

Abstract

Purpose- The redistribution of the production value is one of important macroeconomic indicators in determining the economic growth performance of a country. However, since the countries present different growth performance and have various conjunctural changes, they may present different income redistribution of production values and therefore they migh show variation in socialinjustice. Commonly countries with fragile economies face many problems incluing high inflation and unemployment rates, budget deficit and current account deficit. This study aims to examine the impact of the discontent index on the fairness of income distribution in fragile economies. Methodology- A panel co-integration test was conducted to analyze the impact of economic discontent, total factor productivity and human capital on income distribution in four countries (Türkiye Brazil, Argentina and Indonesiaduring the the 1985-2019s. Findings- The panel co-integration test did reveal any significant factors affecting the discontent index on the fairness of income distribution in fragile economies considered in this study. Conclusion- According to the results of the research, inequality in income distribution should be analyzed comprehensively both at macro and micro scales so that this study is planned to be carried out bteween a large number and group of country. Keywords: Income inequality, discontent index, total factor productivity, panel cointegration, human capital index JEL Codes: E20, C50, D63