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Does Economic Inequality Promote Economic Growth? A Cross-National Time-Series Analysis

Опубликовано на портале: 31-01-2003
This paper uses annual time-series data on a sample of thirty-nine countries to investigate the impact of inequality on growth over the 1950-1998 period. Our inequality measure is the property-income share of GDP, selected because it is both the means and the motive for investment, the proximate cause of growth in most theories. Cross-national time-series regression analysis of the pooled data finds only limited evidence that inequality increases subsequent growth, and only in a few countries. There is no evidence that this effect can be generalized beyond these few nations. The argument that inequality promotes economic growth remains largely unsupported.

http://www.albany.edu/csda/workpap.html

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http://www.albany.edu/csda/workpap.html
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