Income distribution peculiarities in differently developed selected european countries versus Qatar

Abstract

Development patterns of any country are determined by a wide array of factors. Those factors differ in developed and less developed countries. Developed countries, as a rule, rely on human resources, while less developed countries build their wellbeing on available natural resources. Anyway, income distribution across society of any country is an important constituent of entrepreneurship competitive potential. If the middle class prevails in a society, a consumption and saving model is to be expected, and if, on the contrary, lower or upper class dominates, the prevailing lifestyle and consumption patterns will be different. Successful entrepreneurship, which is the precondition of competitiveness of any country, requires clear understanding what income distribution patterns are characteristic for different countries and how these distribution changes are reacting to external factors, such as macroeconomic cycles in partnering countries or political climate, Trumps’ policy, Brexit scenarios, Eurozone or global crises etc. The presented here study will be based on the comparison of distribution patterns of income and wealth in developed European countries, which would be represented by Germany, then in comparatively less developed European countries, which would be represented by Lithuania and Romania, and also in Qatar. After juxtaposing of income distribution patterns and generalizations, sensitivity of income distribution across society to external factors, listed above, will be checked. For that purpose, a modelling tool provided by the Passport database owned by the Euromonitor International Company will be used. This modelling tool is available for official subscribers of the Passport. The obtained results reveal income distribution patterns and resilience of the selected countries to external factors. The results have both theoretical and practical value since consistent patterns of income and wealth distribution are revealed.