A comparison of international income inequality: an ordered probit model analysis

In this study, the ordered probit model with marginal effect was applied to examine the key elements that influence changes in the Gini levels. The empirical results indicated that export incentives and poverty have a positive impact on the Gini levels. Moreover, the marginal effect revealed that export incentives increase income inequality for countries with higher inequality and reduce inequality for those countries with a relatively even income distribution. Likewise, the study found that the Asian Pacific Economic Cooperation (APEC) and the EU countries move from inequality to equality more efficiently than countries in the Latin American Integration Association (LAIA).