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Interrelation Between Growth and Inequality

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  • Jong Woo Kang

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Abstract

The paper highlights the importance of “broad-based growth†as a framework to support economic growth and inclusiveness at the same time. Different countries show different dynamics between economic growth and inequality depending on diverse development, social, and economic contexts. If a growth pattern worsens inequality, renewed attention should be paid to curbing inequality. Those countries showing an inclusive growth pattern are encouraged to further promote growth with a lower risk of sacrificing equity.

Suggested Citation

  • Jong Woo Kang, 2015. "Interrelation Between Growth and Inequality," Working Papers id:7394, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:7394
    Note: Institutional Papers
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    References listed on IDEAS

    as
    1. Karen Davtyan, 2016. "Interrelation among Economic Growth, Income Inequality, and Fiscal Performance: Evidence from Anglo-Saxon Countries," Hacienda Pública Española, IEF, vol. 217(2), pages 37-66, June.
    2. Evridiki Tsounta & Anayochukwu Osueke, 2014. "What is Behind Latin America’s Declining Income Inequality?," IMF Working Papers 14/124, International Monetary Fund.
    3. Era Dabla-Norris & Kalpana Kochhar & Nujin Suphaphiphat & Frantisek Ricka & Evridiki Tsounta, 2015. "Causes and Consequences of Income Inequality; A Global Perspective," IMF Staff Discussion Notes 15/13, International Monetary Fund.
    4. Serhan Cevik & Carolina Correa-Caro, 2015. "Growing (Un)equal; Fiscal Policy and Income Inequality in China and BRIC+," IMF Working Papers 15/68, International Monetary Fund.
    5. Barro, Robert J., 2008. "Inequality and Growth Revisited," Working Papers on Regional Economic Integration 11, Asian Development Bank.
    6. Rahul Anand & Saurabh Mishra & Shanaka J Peiris, 2013. "Inclusive Growth; Measurement and Determinants," IMF Working Papers 13/135, International Monetary Fund.
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    Cited by:

    1. Yang, Yiwen & Greaney, Theresa M., 2017. "Economic growth and income inequality in the Asia-Pacific region: A comparative study of China, Japan, South Korea, and the United States," Journal of Asian Economics, Elsevier, vol. 48(C), pages 6-22.

    More about this item

    Keywords

    dynamic causality; economic growth; inequality; Gini coefficients; Asia; Hong Kong; China; India; Gini Trend ; Growth Trend; Inclusive Growth; OECD Countries; sustainable growth; Cross-Country Comparisons; GDP; VAR regression; VECM model.;

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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