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Re-examining the relationship between economic growth and inequality in the New Member States

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  • Monica Szeles

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Abstract

The link between income inequality and economic growth has raised many debates in the literature and has generated a large spectrum of results over time. This paper aims at analyzing the relationship between economic growth and income inequality, as well as their macroeconomic and institutional determinants in the New Member States, between 2000 and 2009. In the presence of a set of explicative variables, the economic growth influences the social inequality through a U-shaped relationship. Health, education and gross capital formation generate different direct and indirect effects on income inequality as the per capita GDP growths, while the transition indicators are found to be either common or specific determinants of inequality and growth. Copyright Springer Science+Business Media B.V. 2013

Suggested Citation

  • Monica Szeles, 2013. "Re-examining the relationship between economic growth and inequality in the New Member States," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(5), pages 2799-2813, August.
  • Handle: RePEc:spr:qualqt:v:47:y:2013:i:5:p:2799-2813
    DOI: 10.1007/s11135-012-9689-0
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    More about this item

    Keywords

    Economic growth; Income inequality; Kuznets curve; New Member States; F43; O43;

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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