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Income Distribution, Investment, and Growth

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Author Info

  • Larrain, F.B.
  • Vergara, R.M.

Abstract

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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Bibliographic Info

Paper provided by Harvard - Institute for International Development in its series Papers with number 596.

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Length: 24 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:fth:harvid:596

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Related research

Keywords: INCOME DISTRIBUTION ; INVESTMENTS ; ECONOMIC GROWTH;

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Cited by:
  1. Ravallion, Martin, 1998. "Does aggregation hide the harmful effects of inequality on growth?," Economics Letters, Elsevier, vol. 61(1), pages 73-77, October.
  2. Seguino, Stephanie, 2000. "Gender Inequality and Economic Growth: A Cross-Country Analysis," World Development, Elsevier, vol. 28(7), pages 1211-1230, July.
  3. Stephanie Seguino, 2000. "Accounting for Gender in Asian Economic Growth," Feminist Economics, Taylor & Francis Journals, vol. 6(3), pages 27-58.

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