One Third of the Worlds Growth and Inequality

Danny Quah

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: This paper studies growth and inequality in China and India û two economies that account for a third of the world's population. By modelling growth and inequality as components in a joint stochastic process, the paper calibrates the impact each has on different welfare indicators and on the personal income distribution across the joint population of the two countries. For personal income inequalities in a China-India universe, the forces assuming first-order importance are macroeconomic: growing average incomes dominate all else. The relation between aggregate economic growth and within-country inequality is insignificant for inequality dynamics.

Keywords: China; distribution dynamics; Gini coefficient; headcount index; India; poverty; world individual income distribution (search for similar items in EconPapers)
JEL-codes: D30 O10 O57 (search for similar items in EconPapers)
Date: 2002-06
References: Add references at CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
https://cep.lse.ac.uk/pubs/download/DP0535.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:cep:cepdps:dp0535

Access Statistics for this paper

More papers in CEP Discussion Papers from Centre for Economic Performance, LSE
Bibliographic data for series maintained by ().