The Inequality-Growth Nexus in the Short and Long Runs: Empirical Evidence from China

Guanghua Wan, Ming Lu and Zhao Chen

No RP2006-92, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper argues that the conventional approach of data averaging is problematic for exploring the growth-inequality nexus. It introduces the polynomial inverse lag (PIL) framework so that the impacts of inequality on investment, education, and ultimately on growth can be measured at precisely defined time lags. Combining PIL with simultaneous systems of equations, we analyze the growth-inequality relationship in postreform China, finding that this relationship is nonlinear and is negative irrespective of time horizons.

Keywords: Economic development; Equality and inequality (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (73)

Downloads: (external link)
https://www.wider.unu.edu/sites/default/files/rp2006-92.pdf (application/pdf)

Related works:
Journal Article: The inequality-growth nexus in the short and long run: Empirical evidence from China (2006)
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:unu:wpaper:rp2006-92

Access Statistics for this paper

More papers in WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER) Contact information at EDIRC.
Bibliographic data for series maintained by Siméon Rapin ().