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Income Inequality And Economic Growth: Empirical Investigations On The Transmission Channels

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  • Sbaouelgi Jihène

    (Doctorante à l’Ecole Supérieure des Sciences Economiques et Commerciales)

Abstract

The aim of this paper is to quantify the transmission channels of income inequality on economic growth. We try to determine what is the most important channel through which income inequality affects growth. To do this, we will estimate our basic model with variable rates. Then, we will use a simultaneous equations model to decompose the direct and indirect effects of income inequality on economic growth. According to the results, corruption is the most important channel, while trade openness channel is the least important.

Suggested Citation

  • 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.
    • Handle: RePEc:rau:journl:v:8:y:2013:i:2:p:75-92
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    References listed on IDEAS

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