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Research Article
INEQUALITY AND GROWTH: ANOTHER LOOK WITH A NEW MEASURE AND METHOD
Article first published online: 20 JAN 2012
DOI: 10.1002/jid.2812
Copyright © 2012 John Wiley & Sons, Ltd.
Additional Information
How to Cite
Malinen, T. (2013), INEQUALITY AND GROWTH: ANOTHER LOOK WITH A NEW MEASURE AND METHOD. J. Int. Dev., 25: 122–138. doi: 10.1002/jid.2812
Publication History
- Issue published online: 13 DEC 2012
- Article first published online: 20 JAN 2012
- Abstract
- Article
- References
- Cited By
Keywords:
- EHII2008 inequality measure;
- panel data;
- generalised method of moments
ABSTRACT
Recent empirical research on the relationship between income inequality and economic growth has provided controversial results. Some studies predict a negative effect of inequality on growth and some a positive effect. Answers to the controversy have usually been sought in the problems of the estimation technique, the measure of inequality or in some form of non-linearity in the relationship between inequality and growth. This study accounts for these problems by using an improved measure of income distribution and a parametric group-related panel estimation. In conclusion, we find that the effect of inequality is likely to be non-linear. Copyright © 2012 John Wiley & Sons, Ltd.