Impact of Income Inequality on Economic Growth: The Case of Taiwan and Policy Implications

Yu Hsing
Additional contact information
Yu Hsing: Economics, Department of Gen. Business, SLU 10813, College of Business and Technology, Southern Louisiana University, Hammond, LA 70402.

Journal of Social and Economic Development, 2004, vol. 6, issue 2, 194-204

Abstract: In this paper, a classical K-L production function augmented with human capital and technological progress to estimate the effect of income inequality on economic growth in Taiwan has been employed. The generalised autoregressive conditional heteroskedasticity (GARCH) and/ or ARCH models have been applied to estimate regression parameters. The research findings suggest that a higher Gini coefficient deteriorates economic growth. When measured by the ratio of the highest fifth’s income to the lowest fifth’s income, the negative relationship between inequality and economic growth is also confirmed. Other results are consistent with the economic theories: growth in employment, human capital investment, and R and D spending all contributing to economic growth.

Date: 2004
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.isec.ac.in/JSED_v6_i1_194-204.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sch:journl:v:6:y:2004:i:2:p:194-204

Access Statistics for this article

More articles in Journal of Social and Economic Development from Institute for Social and Economic Change, Bangalore Contact information at EDIRC.
Bibliographic data for series maintained by B B Chand ().