Determinants of income inequality in post-communist Central and Eastern European countries: Role of corruption
|Thesis title in Czech:||Determinanty příjmové nerovnosti v post-komunistických zemích střední a východní Evropy:
|Thesis title in English:||Determinants of income inequality in post-communist Central and Eastern European countries:
Role of corruption
|English key words:||Corruption, income inequality, economic growth, panel data|
|Academic year of topic announcement:||2014/2015|
|Type of assignment:||diploma thesis|
|Department:||Institute of Economic Studies (23-IES)|
|Supervisor:||Mgr. Ing. Eva Hromádková, Ph.D.|
|Author:||hidden - assigned by the advisor|
|Date of registration:||15.06.2015|
|Date of assignment:||15.06.2015|
|Date and time of defence:||23.06.2016 11:00|
|Venue of defence:||IES|
|Date of electronic submission:||12.05.2016|
|Date of proceeded defence:||23.06.2016|
|Reviewers:||PhDr. Mgr. Goran Serdarevič, M.A.|
|1. Abrigo R.M. & I. Love (2015): „Estimation of Panel Vector Autoregression in Stata: a Package of Programs.“ Working Papers.
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6. Johansson, Ch. & C-J. Lext (2013): „Corrupt ion and Income Inequality. A study of the impact from different legal systems.” Jonkoping International Business School: pp. 1-28.
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9. Samadi, A.H. & B. Farahmandpour (2013): „The Effect of Income Inequality on Corruption in Selected Countries (1995-2007)“. Journal of Emerging Issues in Economics, Finance and Banking 1(3): pp. 214-231.
10. You, J. & S. Khagram (2005): “A Comparative Study of Inequality and Corruption.” American Sociological Review, 70 (February): pp. 136-157.
|Preliminary scope of work in English|
|The main purpose of this thesis is to investigate the effect of corruption on income inequality (that could serve as indicator of the welfare of whole society). Since post-communist countries of Central and Eastern Europe had issues with providing effective policies for adapting to the market economy, we want to discover main drivers of this situation. Our analysis was performed on two datasets: 11 post-communist countries CEE and additional 17 European Union countries. Main obstacle of the research is inherent heterogeneity present across countries. We implemented different estimation methods and discovered that panel Vector autoregressive model is the best choice. We found that corruption has positive relationship with income inequality. Furthermore, other important drivers are: social spending, education level and unemployment. As a result, we suggested the ways to decrease corruption on the appropriate example of Georgia.|