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One Third of the Worlds Growth and Inequality

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  • Danny Quah
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    Abstract

    This paper studies growth and inequality in China and India û two economies that account for a third of the world's population. By modelling growth and inequality as components in a joint stochastic process, the paper calibrates the impact each has on different welfare indicators and on the personal income distribution across the joint population of the two countries. For personal income inequalities in a China-India universe, the forces assuming first-order importance are macroeconomic: growing average incomes dominate all else. The relation between aggregate economic growth and within-country inequality is insignificant for inequality dynamics.

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    File URL: http://cep.lse.ac.uk/pubs/download/DP0535.pdf
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    Bibliographic Info

    Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0535.

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    Date of creation: Jun 2002
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    Handle: RePEc:cep:cepdps:dp0535

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    Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

    Related research

    Keywords: China; distribution dynamics; Gini coefficient; headcount index; India; poverty; world individual income distribution;

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    Cited by:
    1. Michał Kruszka & Marcin Puziak, 2010. "Convergence and Distributions of Income in Large European Economies," Contemporary Economics, University of Finance and Management in Warsaw, vol. 4(4), December.
    2. Timothy M. Smeeding, 2002. "Globalization, Inequality, and the Rich Countries of the G-20: Evidence from the Luxembourg Income Study (LIS)," Center for Policy Research Working Papers 48, Center for Policy Research, Maxwell School, Syracuse University.
    3. Servaas van der Berg & Megan Louw, 2003. "Changing Patterns of South African income distribution: Towards time series estimates of distribution and poverty," Working Papers 02/2003, Stellenbosch University, Department of Economics.
    4. Branko Milanovic, 2003. "The Ricardian Vice: Why Sala-i-Martin’s calculations of world income inequality are wrong," HEW 0305003, EconWPA.
    5. Andrew Berg & Anne O. Krueger, 2003. "Trade, Growth, and Poverty: A Selective Survey," IMF Working Papers 03/30, International Monetary Fund.
    6. repec:idb:brikps:8389 is not listed on IDEAS

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