Income Inequality and Economic Growth Revisited. A Note

CARABALLO POU, MARÍA ANGELES; DABÚS, CARLOS; DELBIANCO, FERNANDO ANDRÉS

The Journal of International Development

Wiley

Año: 2017 vol. 29

The relationship betweenincome inequality and economic growth is estimated using dynamic panelestimation on a sample covering 112 emerging countries for the period 1980-2014.  The results show that income inequality has apositive influence on economic growth for richer countries, in line with the classictheory, and a negative effect for poorer countries, as argued by the politicaleconomy approach.