Income Distribution, Investment, and Growth

F.B. Larrain and Rodrigo Vergara ()

Working Papers from Harvard - Institute for International Development

Abstract: This paper carries out an empirical investigation on the determinants of economic growth for a group of 45 countries, including developed and developing economies. The paper focuses on the relationship between growth and income distribution. Unlike the traditional approach in which causality runs from growth to distribution, we hypothesize that greater inequality in income distribution retards a country's growth process, because greater inequality increases the possibility of social conflict.

Keywords: INCOME DISTRIBUTION; INVESTMENTS; ECONOMIC GROWTH (search for similar items in EconPapers)
JEL-codes: O15 O4 (search for similar items in EconPapers)
Pages: 24 pages
Date: 1997
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:fth:harvid:596

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