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Impact Of Income Inequality And Defence Burden On Economic Growth

Author

Listed:
  • ZAINAB IFTIKHAR

    (Pakistan Institute of Development Economics, P.O. Box 1091, Quaid-e-Azam University Campus, 44000 Islamabad, Pakistan)

  • AMANAT ALI

    (School of Economics, Quaid-e-Azam University, 44000 Islamabad, Pakistan)

Abstract

This study explores how income inequality and defence burden affects economic growth in different parts of the world. We follow an endogenous growth model that proposes a negative relationship of growth with income inequality and defence burden. The implications of the model are tested using panel data. The results suggest a negative relationship of growth with income inequality and defence burden. A by-product of this analysis is the conclusion regarding convergence. Our study finds no support for convergence across the world.

Suggested Citation

  • Zainab Iftikhar & Amanat Ali, 2012. "Impact Of Income Inequality And Defence Burden On Economic Growth," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 57(03), pages 1-15.
    • Handle: RePEc:wsi:serxxx:v:57:y:2012:i:03:n:s0217590812500142
    DOI: 10.1142/S0217590812500142
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    References listed on IDEAS

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    1. Dean Howard Smith, 1994. "Native American Economic Development: A Modern Approach," The Review of Regional Studies, Southern Regional Science Association, vol. 24(1), pages 87-102, Summer.
    2. Chris Elbers & Jan Willem Gunning, 2004. "Transitional Growth and Income Inequality: Anything Goes," GE, Growth, Math methods 0409001, University Library of Munich, Germany, revised 08 Sep 2004.
    3. Samuel H. Preston & Michael R. Haines, 1991. "Fatal Years: Child Mortality in Late Nineteenth-Century America," NBER Books, National Bureau of Economic Research, Inc, number pres91-1, March.
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    Cited by:

    1. Sakiru Solarin, 2016. "Sources of labour productivity: a panel investigation of the role of military expenditure," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(2), pages 849-865, March.

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    More about this item

    Keywords

    Defence burden; income inequality; economic growth; convergence; endogenous growth model; D30; E60; O40;
    All these keywords.

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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