This paper carries out an empirical investigation on the determinants of economic growth for a group of 45 countries, including developed and developing economies. The paper focuses on the relationship between growth and income distribution. Unlike the traditional approach in which causality runs from growth to distribution, we hypothesize that greater inequality in income distribution retards a country's growth process, because greater inequality increases the possibility of social conflict.
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Paper provided by Harvard - Institute for International Development in its series Papers with number
596.
Length: 24 pages Date of creation: 1997 Date of revision: Handle: RePEc:fth:harvid:596
Contact details of provider: Postal: CAER Project, Harvard Institute for International Development, 14 Story Street, Cambridge MA 02138O Phone: (617)495-2161 Fax: (617)495-0527 Email: Web page: http://www.hiid.harvard.edu/ More information through EDIRC
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Find related papers by JEL classification: O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity