The Impact of the ICT and Export Diversification on Income Inequality: Panel Quantile Regression Analysis

The article aims to provide an empirical investigation of the relationship between ICT development, export diversification, and income inequality based on a panel quantile regression analysis of data from 83 countries for the period 2002-2019. The results indicate that ICT progress negatively influences income inequality, and this adverse effect is more substantial in countries with a higher GINI coefficient. Export diversification also contributes to a more equitable income distribution, and this impact is higher in countries with low and middle levels of income inequality. Among the control variables, GDP per capita and human capital index significantly negatively influences income inequality. Thus, countries with high levels of income inequality should pay more attention to the digitalization of the economy and enhance export diversification.