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Distribution and growth: cross-country evidence

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  • Kang Park
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    Abstract

    An endogenous growth model is presented to examine the determinants of economic growth and income distribution and their relationship. Three major findings from a cross-country analysis of 45 countries are: (1) a higher level of educational attainment of the labour force has an equalizing effect on income distribution, while the larger the dispersion of schooling among the labour force, the greater the income inequality; (2) human capital investment as well as physical capital investment are significant factors contributing to economic growth; and (3) income inequality has a negative effect on economic growth, supporting the existence of a complementary relationship between equity and growth.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325372
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Applied Economics.

    Volume (Year): 30 (1998)
    Issue (Month): 7 ()
    Pages: 943-949

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    Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:943-949

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    Web page: http://www.tandfonline.com/RAEC20

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    Cited by:
    1. Mo, Pak Hung, 2000. "Income Inequality and Economic Growth," Kyklos, Wiley Blackwell, vol. 53(3), pages 293-315.
    2. Sumie & Mototsugu Fukushige, 2007. "Globalization and Economic Inequality in the Short and Long Run: The Case of South Korea 1975-1995," Discussion Papers in Economics and Business 07-43, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
    3. Ziesemer, Thomas, 2011. "What Changes Gini Coefficients of Education? On the dynamic interaction between education, its distribution and growth," MERIT Working Papers 053, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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