One third of the world's growth and inequality

Danny Quah

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper studies growth and inequality in China and India – 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)
Pages: 43 pages
Date: 2002-06
References: View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:2019

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