Urbanization and income inequality nexus: bootstrap panel granger causality analysis

This study aims to analyze empirically the nexus among urbanization and income inequality in the context of 8 New Industrializing Country (Brazil, China, Indonesia, Philippines, Malaysia, Mexico, Thailand, Turkey) by using annual data set fort he period 2000-2018. The causality relationship between the variables was investigated using Kónya's (2006) Bootstrap panel Granger causality analysis. The results of the Bootstarp panel Granger causality reveal that there exists a one-way causality running from urbanization to income inequality for Brazil, Philippines, Indonesia and Malaysia; a one-way causality running from income inequality to urbanization for China; two-way causality relation Mexico and Turkey. In Thailand, no causality relationship has been found between urbanization and income inequality.