Redistribution and Inequality Impact on Economic Growth to the Extent of Economic Freedom

Goksu Aslan

No 2705203, Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences

Abstract: In this paper, redistribution and inequality impact on economic growth are observed for the countries in the panel framework approach, to the extent of their economic freedom score. There exists a growing research interest on inequality and economic growth relationships in the global level. On the other hand, redistributive policies and their effects are highly controversial since some views cover that the interventions for equality may have negative effects on economic growth. I apply system GMM estimation on a dynamic panel model as to test inequality and redistribution effects on economic growth and compare with ordinary least squares, within group and difference GMM estimations. Dataset includes annual observations from 1995 to 2011 for 141 countries. According to the SYS-GMM estimation results, for economically free countries, both net inequality and redistribution have negative impact on economic growth . The impact of net inequality is absolutely higher than impact of redistribution. For economically unfree countries, net inequality has positive significant effect, while redistribution has negative significant effect which is very low.

Keywords: Economic growth; GDP; GMM; inequality; redistribution; economic freedom (search for similar items in EconPapers)
JEL-codes: C23 E62 O40 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2015-09
New Economics Papers: this item is included in nep-gro, nep-mac and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Proceedings of the Proceedings of the 18th International Academic Conference, London, Sep 2015, pages 112-120

Downloads: (external link)
https://iises.net/proceedings/18th-international-a ... =27&iid=016&rid=5203 First version, 2015

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:sek:iacpro:2705203

Access Statistics for this paper

More papers in Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences
Bibliographic data for series maintained by Klara Cermakova ().