Inequality and Economic Growth : The Role of Initial Income
This paper estimates a panel model in which the relationship between inequality and gross domestic product per capita growth depends on countries' initial incomes. Estimates of the model show that the relationship between inequality and gross...
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/574281528247194319/Inequality-and-economic-growth-the-role-of-initial-income http://hdl.handle.net/10986/29896 |
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okr-10986-298962022-09-08T12:17:27Z Inequality and Economic Growth : The Role of Initial Income Brueckner, Markus Lederman, Daniel INEQUALITY ECONOMIC GROWTH TRANSITIONAL GROWTH GINI COEFFICIENT This paper estimates a panel model in which the relationship between inequality and gross domestic product per capita growth depends on countries' initial incomes. Estimates of the model show that the relationship between inequality and gross domestic product per capita growth is significantly decreasing in countries' initial incomes. The results from instrumental variables regressions show that in low-income countries, transitional growth is boosted by greater income inequality. In high-income countries, inequality has a significant negative effect on transitional growth. For the median country in the world that in 2015 had a purchasing power parity gross domestic product per capita of around US$10,000, instrumental variables estimates predict that a 1 percentage point increase in the Gini coefficient decreases gross domestic product per capita growth over a five-year period by over 1 percentage point; the long-run effect on the level of gross domestic product per capita is around -5 percent. 2018-06-18T21:55:27Z 2018-06-18T21:55:27Z 2018-06 Working Paper http://documents.worldbank.org/curated/en/574281528247194319/Inequality-and-economic-growth-the-role-of-initial-income http://hdl.handle.net/10986/29896 English Policy Research Working Paper;No. 8467 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
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Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
INEQUALITY ECONOMIC GROWTH TRANSITIONAL GROWTH GINI COEFFICIENT |
| spellingShingle |
INEQUALITY ECONOMIC GROWTH TRANSITIONAL GROWTH GINI COEFFICIENT Brueckner, Markus Lederman, Daniel Inequality and Economic Growth : The Role of Initial Income |
| relation |
Policy Research Working Paper;No. 8467 |
| description |
This paper estimates a panel model in
which the relationship between inequality and gross domestic
product per capita growth depends on countries' initial
incomes. Estimates of the model show that the relationship
between inequality and gross domestic product per capita
growth is significantly decreasing in countries'
initial incomes. The results from instrumental variables
regressions show that in low-income countries, transitional
growth is boosted by greater income inequality. In
high-income countries, inequality has a significant negative
effect on transitional growth. For the median country in the
world that in 2015 had a purchasing power parity gross
domestic product per capita of around US$10,000,
instrumental variables estimates predict that a 1 percentage
point increase in the Gini coefficient decreases gross
domestic product per capita growth over a five-year period
by over 1 percentage point; the long-run effect on the level
of gross domestic product per capita is around -5 percent. |
| format |
Working Paper |
| author |
Brueckner, Markus Lederman, Daniel |
| author_facet |
Brueckner, Markus Lederman, Daniel |
| author_sort |
Brueckner, Markus |
| title |
Inequality and Economic Growth : The Role of Initial Income |
| title_short |
Inequality and Economic Growth : The Role of Initial Income |
| title_full |
Inequality and Economic Growth : The Role of Initial Income |
| title_fullStr |
Inequality and Economic Growth : The Role of Initial Income |
| title_full_unstemmed |
Inequality and Economic Growth : The Role of Initial Income |
| title_sort |
inequality and economic growth : the role of initial income |
| publisher |
World Bank, Washington, DC |
| publishDate |
2018 |
| url |
http://documents.worldbank.org/curated/en/574281528247194319/Inequality-and-economic-growth-the-role-of-initial-income http://hdl.handle.net/10986/29896 |
| _version_ |
1764470657943339008 |