Growth versus distribution: revisiting the trade-off

Kunal Sen

Journal of Development Effectiveness, 2015, vol. 7, issue 4, 471-483

Abstract: In this article, we revisit the growth distribution trade-off, drawing from the recent theory and empirics of growth. We differentiate between episodes of growth acceleration and episodes of growth maintenance. We show that while there may be a trade-off between growth and distribution during a growth acceleration, there is no trade-off in growth maintenance. During a growth maintenance episode, policies and institutional reforms that improve income distribution may actually be growth-enhancing.

Date: 2015
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DOI: 10.1080/19439342.2015.1098721

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