Inequality, poverty and economic growth

Robert Breunig and Omer Majeed

International Economics, 2020, issue 161, 83-99

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: Inequality; Economic growth; Poverty; Cross-country regressions (search for similar items in EconPapers)
JEL-codes: D63 I39 O47 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (17)

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Journal Article: Inequality, poverty and economic growth (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:cii:cepiie:2020-q1-161-7

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