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Inequality and Growth Revisited

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Author Info
Barro, Robert J. () (Harvard University)

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Abstract

This paper updates and extends the work of Barro (2000). International data confirm the presence of the Kuznets curve-an inverse-U shape relationship between income inequality and per capita GDP-that is relatively stable from the 1960s into the 2000s. The direct effect of international openness on income inequality is also found to be positive. On the other hand, a cross-country-growth equation shows a negative effect of income inequality on economic growth, holding fixed a familiar set of other explanatory variables. This effect diminishes as per capita GDP rises and may be positive for the richest countries.

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File URL: http://aric.adb.org/pdf/workingpaper/WP11_%20Inequality_and_Growth_Revisited.pdf
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Publisher Info
Paper provided by Asian Development Bank in its series Working Papers on Regional Economic Integration with number 11.

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Length: 16 pages
Date of creation: 01 Jan 2008
Date of revision:
Handle: RePEc:ris:adbrei:0011

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Web page: http://www.adb.org
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Related research
Keywords: inequality; growth; Kuznets curve; Gini coefficient;

Find related papers by JEL classification:
I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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This page was last updated on 2009-11-16.

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