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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 and 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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    Cited by:
    1. Mo, Pak Hung, 2000. "Income Inequality and Economic Growth," Kyklos, Wiley Blackwell, vol. 53(3), pages 293-315.
    2. Sato, Sumie & Fukushige, Mototsugu, 2009. "Globalization and economic inequality in the short and long run: The case of South Korea 1975-1995," Journal of Asian Economics, Elsevier, vol. 20(1), pages 62-68, January.
    3. Ziesemer, Thomas, 2011. "What Changes Gini Coefficients of Education? On the dynamic interaction between education, its distribution and growth," UNU-MERIT Working Paper Series 053, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.

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