IMPACT OF INTELLECTUAL PROPERTY RIGHTS AND GOVERNMENTAL POLICY ON INCOME INEQUALITY.

The hypothesis of inverted U-curve dependence of the income inequality on the absolute value of the average income is still unresolved issue despite of the growing number of theoretical and empirical research on this topic. The paper examines the impact of governmental policy and the scientific and technological development on income inequality for 145 countries over a period 1979-2012. We found that the income inequality is influenced predominantly by governmental policy on social transfers. Based on the experimental data a model describing the influence of social contributions, the expenditure on research and development, intellectual property rights and GDP per capita was developed

Keywords:

Intellectual property rights, Kuznets curve inverted U-curve, income inequality,

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