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Title

NON-LINEAR EFFECTS OF ECONOMIC GLOBALIZATION ON INCOME INEQUALITY IN IRAN: SMOOTH TRANSITION REGRESSION (STR) MODEL

Writers

JAFARI MOHAMMAD

Pages

 Start Page 61 | End Page 76

Keywords

SMOOTH TRANSITION REGRESSION (STR) MODELQ1

Abstract

 Due to the important role of ECONOMIC GLOBALIZATION in INCOME INEQUALITY of countries, the purpose of this paper is to investigate the non-linear impact of ECONOMIC GLOBALIZATION on INCOME INEQUALITY in IRAN during 1979-2014. For this purpose, is used the smooth transition regression (STR) model. The estimated Smooth Transition Regression (STR) model supports a nonlinear threshold behavior in the relationship between ECONOMIC GLOBALIZATION and INCOME INEQUALITY in the country in a two regime structures with positive effect and a threshold level of about 26/15%. so that increases the intensity of this positive impact with crossing threshold level and entering the second regime.

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