DOI: 10.57760/sciencedb.07235
title: Economic Development is Two-Dimensional, not One-Dimensional
title: Economic Development is Two-Dimensional, not One-Dimensional

description: The data and code in this data submission facilitate replication of the empirical results in Obrimah (2021), a study titled, "Income Inequality and Per Capita Income: Equilibrium of Interactions". The intuition for the study's outcome is straightforward, namely if Economic Growth is not equivalent to Economic Development, yet is a necessary condition for Economic Development, necessarily there exists some alternate variable, which composed with Economic Growth generates Economic Development. The formal theory in Obrimah (2021) arrives, endogenously, at such a variable, a variable that is termed, in that study, 'Relative Income Inequality'. Importantly, the formal theory establishes that raw measures of income inequality are non-robust to comparisons of economic development across countries, with outcome the Relative Income Inequality variable is a necessary parameter for the parameterization of economic development within cross-sections of countries. The empirical results bear out the theory, show economic development is two-dimensional, that is, a function of Economic Growth, which has yearly realizations of Real GDP Per Capita as proxy, and Relative Income Inequality. For concreteness, if Economic Development really is two-dimensional, necessarily the relation between GDP Per Capita and Relative Income Inequality is non-linear, exactly the outcome in the empirical tests. For additional concreteness, raw measures of income inequality explicitly are shown not to be robust to the parameterization of economic development within the cross-section of sample countries. Obrimah (2021) already is a 'Publication by DOI', as such is citable.
description: The data and code in this data submission facilitate replication of the empirical results in Obrimah (2021), a study titled, "Income Inequality and Per Capita Income: Equilibrium of Interactions". The intuition for the study's outcome is straightforward, namely if Economic Growth is not equivalent to Economic Development, yet is a necessary condition for Economic Development, necessarily there exists some alternate variable, which composed with Economic Growth generates Economic Development. The formal theory in Obrimah (2021) arrives, endogenously, at such a variable, a variable that is termed, in that study, 'Relative Income Inequality'. Importantly, the formal theory establishes that raw measures of income inequality are non-robust to comparisons of economic development across countries, with outcome the Relative Income Inequality variable is a necessary parameter for the parameterization of economic development within cross-sections of countries. The empirical results bear out the theory, show economic development is two-dimensional, that is, a function of Economic Growth, which has yearly realizations of Real GDP Per Capita as proxy, and Relative Income Inequality. For concreteness, if Economic Development really is two-dimensional, necessarily the relation between GDP Per Capita and Relative Income Inequality is non-linear, exactly the outcome in the empirical tests. For additional concreteness, raw measures of income inequality explicitly are shown not to be robust to the parameterization of economic development within the cross-section of sample countries. Obrimah (2021) already is a 'Publication by DOI', as such is citable.