IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

Divergent Perspectives On The Causal Relationship Between Economic Growth And Income Inequality

Registered author(s):

    Once with the latest wave of globalization, economic inequality regains an important place in the developmental studies. If the purpose of the contemporary globalization viewed from a neoclassical perspective is to achieve a convergence of productivity levels and average incomes for the participating countries, then the study of economic disparities between them is a matter of interest. The article aims to clarify the different approaches regarding the interdependent relationship between income inequality and economic growth. The effects on growth determined by inequality can be viewed in terms of two divergent approaches. On one hand, the beneficial consequences on growth are manifesting by increasing savings, technological advancement, reduced administrative costs and increasing the levels of investments. On the other hand, the negative effects on growth are manifesting through lower levels of investment, uncertain property rights, high taxes and an adverse impact on human capital accumulation.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by Spiru Haret University, Faculty of Accounting and Financial Management Constanta in its journal Journal of Academic Research in Economics.

    Volume (Year): 4 (2012)
    Issue (Month): 2 (July) ()
    Pages: 246-255

    in new window

    Handle: RePEc:shc:jaresh:v:4:y:2012:i:2:p:246-255
    Contact details of provider: Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:shc:jaresh:v:4:y:2012:i:2:p:246-255. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudiu Chiru)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.