All About the Giants: Probing the Influences on Growth and Income Inequality at the End of the 20th Century
This paper presents estimates of world output growth from 1970 to 2000, the distribution of income among countries and persons for the years 1980, 1990 and 2000, and world poverty rates for the same years. It also presents the results of a series of simulation exercises that attempt isolate the effect of particular country and regional experiences on world output growth and changes in global income inequality and poverty. The authors find that rapid growth in China (despite a downward adjustment of official growth estimates) had a powerful impact on the growth of world output in both the 1980s and 1990s, but that negative economic growth in Eastern Europe more than offset that effect in the 1990s. With respect to the distribution of income however, the equalizing effect of China’s rapid growth, despite the contradictory impact of increasing domestic inequality, was dominant through both the 1980s and 1990s. Only India’s influence remained substantial by comparison. Other identifiable events of the period, such as the economic contraction in Eastern Europe and continued economic decline in Africa had little statistical impact. Thus, when the combined influence of these two countries’ above-average growth rates is removed, the improving global distribution of income suggested by all statistical measures becomes one of sharply worsening inequality. The impact of these twocountries is similarly critical with respect to global poverty reduction.
|Date of creation:||2003|
|Date of revision:|
|Contact details of provider:|| Postal: Poschingerstrasse 5, 81679 Munich|
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo-group.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Donald J. Robbins, 1996. "Evidence on Trade and Wages in the Developing World," OECD Development Centre Working Papers 119, OECD Publishing.
- Robert J. Barro, 1989.
"Economic Growth in a Cross Section of Countries,"
NBER Working Papers
3120, National Bureau of Economic Research, Inc.
- Dan Ben-David, 1993. "Equalizing Exchange: Trade Liberalization and Income Convergence," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 653-679.
When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_840. 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: (Klaus Wohlrabe)
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.