Income Distribution Polarization and Economic Growth: Channels and Effects

Pak Hung Mo
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Pak Hung Mo: Hong Kong Baptist University, Kowloon Tong, Hong Kong.

Indian Economic Review, 2009, vol. 44, issue 1, pages 107-123

Abstract: Developing and transitional economies usually experience high levels of income polarization during the period of transition and rapid economic growth. Understanding and quantifying its effects on the economy is important to developmental strategies. In this paper, we study the effect of income distribution polarization on GDP growth and its transmission channels. We also suggest some strategies to deal with the problem in view of our results and the experiences of income redistribution policies in developed countries.

Keywords: Income Distribution and Policy; Economic Growth; Social Stability (search for similar items in EconPapers)
JEL-codes: O15 O31 (search for similar items in EconPapers)
Date: 2009

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Persistent link: http://EconPapers.repec.org/RePEc:dse:indecr:v:44:y:2009:i:1:p:107-123

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