Some Determinants of Income Inequality in Asia and Latin America

This paper examines the relationship of income inequality in the Asia-Pacific and Latin America regions to several factors such as gross capital formation, corruption, and per capita gross domestic product (GDP). Using a cross-sectional dataset of 36 countries from both regions and ordinary least squares regression, the paper shows that gross capital formation and the lack of corruption have a negative and significant relationship with income inequality while per capita GDP has a positive and significant relationship with income inequality.