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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Impact of Inequalities on Technological Changes: Case of the Developing Countries

Sirine MNIF

http://dx.doi.org/10.6007/IJARBSS/v5-i3/1532

Open access

Technology necessarily produces inequality; we, then, ask whether inequality can block the dissemination and production of technologies. More specifically, we focus on the transmission channels through which inequality affects positively and negatively technological change. There is relatively little evidence concerning the impact of inequality of human capital on the rate of innovation. Economic literature that studies this direction of causality is still limited. However, our goal is to enrich this literature and study the impact of inequality on technological change. Econometrically, our study is based on the technique of unbalanced panel data. An estimate by the method of static panel seems more relevant and a negative effect of inequality on technological changes seems to be confirmed for 48 developing economies.

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