Inequality, poverty and economic growth

Robert Breunig; Omer Majeed

doi:10.1016/j.inteco.2019.11.005

Inequality, poverty and economic growth

Robert Breunig^*, Omer Majeed

^*Corresponding author for this work

Indonesia Project

Research output: Contribution to journal › Article › peer-review

80 Citations (Scopus)

Abstract

Recent research has highlighted a negative impact of inequality on economic growth. We re-evaluate this hypothesis focusing on both inequality and poverty and their interaction. We replicate previous results showing that inequality has a negative impact on growth. However, we show that when we account for both inequality and poverty, the negative effect of inequality on growth appears to be concentrated amongst countries with high poverty. This would argue for policies targeted towards alleviating poverty even if they have no effect on inequality.

Original language	English
Pages (from-to)	83-99
Number of pages	17
Journal	International Economics
Volume	161
DOIs	https://doi.org/10.1016/j.inteco.2019.11.005
Publication status	Published - May 2020

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abstract = "Recent research has highlighted a negative impact of inequality on economic growth. We re-evaluate this hypothesis focusing on both inequality and poverty and their interaction. We replicate previous results showing that inequality has a negative impact on growth. However, we show that when we account for both inequality and poverty, the negative effect of inequality on growth appears to be concentrated amongst countries with high poverty. This would argue for policies targeted towards alleviating poverty even if they have no effect on inequality.",

keywords = "Cross-country regressions, Economic growth, Inequality, Poverty",

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Inequality, poverty and economic growth

Abstract

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