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Distribution and growth: cross-country evidence


  • Kang Park


An endogenous growth model is presented to examine the determinants of economic growth and income distribution and their relationship. Three major findings from a cross-country analysis of 45 countries are: (1) a higher level of educational attainment of the labour force has an equalizing effect on income distribution, while the larger the dispersion of schooling among the labour force, the greater the income inequality; (2) human capital investment as well as physical capital investment are significant factors contributing to economic growth; and (3) income inequality has a negative effect on economic growth, supporting the existence of a complementary relationship between equity and growth.

Suggested Citation

  • Kang Park, 1998. "Distribution and growth: cross-country evidence," Applied Economics, Taylor & Francis Journals, vol. 30(7), pages 943-949.
  • Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:943-949
    DOI: 10.1080/000368498325372

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    References listed on IDEAS

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    3. John Y. Campbell & N. Gregory Mankiw, 1989. "Consumption, Income and Interest Rates: Reinterpreting the Time Series Evidence," NBER Chapters,in: NBER Macroeconomics Annual 1989, Volume 4, pages 185-246 National Bureau of Economic Research, Inc.
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    6. Tamim Bayoumi & Ronald Macdonald, 1995. "Consumption, Income, and International Capital Market Integration," IMF Staff Papers, Palgrave Macmillan, vol. 42(3), pages 552-576, September.
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    8. Mace, Barbara J, 1991. "Full Insurance in the Presence of Aggregate Uncertainty," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 928-956, October.
    9. Moosa, Imad A & Bhatti, Razzaque H, 1996. "Some Evidence on Mean Reversion in ex ante Real Interest Rates," Scottish Journal of Political Economy, Scottish Economic Society, vol. 43(2), pages 177-191, May.
    10. Imad A. Moosa & Razzaque H. Bhatti, 1996. "The European Monetary System and Real Interest Parity: Is there any Connection?," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 132(II), pages 223-235, June.
    11. Michael Dooley & Jeffrey Frankel & Donald J. Mathieson, 1987. "International Capital Mobility: What Do Saving-Investment Correlations Tell Us?," IMF Staff Papers, Palgrave Macmillan, vol. 34(3), pages 503-530, September.
    12. Tesar, Linda L., 1991. "Savings, investment and international capital flows," Journal of International Economics, Elsevier, vol. 31(1-2), pages 55-78, August.
    13. Reinhart, Carmen & Khan, Mohsin, 1995. "Capital Flows in the APEC Region," MPRA Paper 8200, University Library of Munich, Germany.
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    Cited by:

    1. Ziesemer, Thomas, 2011. "What Changes Gini Coefficients of Education? On the dynamic interaction between education, its distribution and growth," MERIT Working Papers 053, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Sato, Sumie & Fukushige, Mototsugu, 2009. "Globalization and economic inequality in the short and long run: The case of South Korea 1975-1995," Journal of Asian Economics, Elsevier, vol. 20(1), pages 62-68, January.
    3. Digdowiseiso, Kumba, 2009. "Education inequality, economic growth, and income inequality: Evidence from Indonesia, 1996-2005," MPRA Paper 17792, University Library of Munich, Germany.
    4. Alfredo Cuevas, 2001. "Short- and Long-Term Poverty and Social Policy in a “Snakes and Ladders” Model of Growth," IMF Working Papers 01/172, International Monetary Fund.
    5. Mo, Pak Hung, 2000. "Income Inequality and Economic Growth," Kyklos, Wiley Blackwell, vol. 53(3), pages 293-315.

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