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Income Distribution Polarization and Economic Growth: Channels and Effects

Author

Listed:
  • Pak Hung Mo

    (Hong Kong Baptist University, Kowloon Tong, Hong Kong.)

Abstract

Developing and transitional economies usually experience high levels of income polarization during the period of transition and rapid economic growth. Understanding and quantifying its effects on the economy is important to developmental strategies. In this paper, we study the effect of income distribution polarization on GDP growth and its transmission channels. We also suggest some strategies to deal with the problem in view of our results and the experiences of income redistribution policies in developed countries.

Suggested Citation

  • Pak Hung Mo, 2009. "Income Distribution Polarization and Economic Growth: Channels and Effects," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 44(1), pages 107-123, July.
  • Handle: RePEc:dse:indecr:v:44:y:2009:i:1:p:107-123
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    Cited by:

    1. Sbaouelgi Jihène, 2013. "Income Inequality And Economic Growth: Empirical Investigations On The Transmission Channels," Romanian Economic Business Review, Romanian-American University, vol. 8(2), pages 75-92, June.
    2. Dagim Tadesse Bekele, 2020. "Effect of Macroeconomic, Demographic, and Governance Factors on Income Inequality of Selected sub-Saharan Africa Countries," Journal of Economic Development, Environment and People, Alliance of Central-Eastern European Universities, vol. 9(1), pages 60-70, September.
    3. Adnen Ben Nasr & Mehmet Balcilar & Rangan Gupta & Seyi Saint Akadiri, 2018. "Asymmetric Effects of Inequality on Per Capita Real GDP of the United States," Working Papers 201820, University of Pretoria, Department of Economics.
    4. Dwiputri, Inayati Nuraini & Arsyad, Lincolin & Pradiptyo, Rimawan, 2018. "The corruption-income inequality trap: A study of Asian countries," Economics Discussion Papers 2018-81, Kiel Institute for the World Economy (IfW).

    More about this item

    Keywords

    Income Distribution and Policy; Economic Growth; Social Stability;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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