Inequality, poverty and economic growth

Robert Breunig; Omer Majeed

doi:10.1016/j.inteco.2019.11.005

Inequality, poverty and economic growth

Research output: Contribution to journal › Article

Abstract

Recent research has highlighted a negative impact of inequality on economic growth. We re-evaluate this hypothesis focusing on both inequality and poverty and their interaction. We replicate previous results showing that inequality has a negative impact on growth. However, we show that when we account for both inequality and poverty, the negative effect of inequality on growth appears to be concentrated amongst countries with high poverty. This would argue for policies targeted towards alleviating poverty even if they have no effect on inequality.

Original language	English
Pages (from-to)	83-99
Journal	International Economics
Volume	161
DOIs	https://doi.org/10.1016/j.inteco.2019.11.005
Publication status	Published - 2020

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title = "Inequality, poverty and economic growth",

abstract = "Recent research has highlighted a negative impact of inequality on economic growth. We re-evaluate this hypothesis focusing on both inequality and poverty and their interaction. We replicate previous results showing that inequality has a negative impact on growth. However, we show that when we account for both inequality and poverty, the negative effect of inequality on growth appears to be concentrated amongst countries with high poverty. This would argue for policies targeted towards alleviating poverty even if they have no effect on inequality.",

author = "Robert Breunig and Omer Majeed",

year = "2020",

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AB - Recent research has highlighted a negative impact of inequality on economic growth. We re-evaluate this hypothesis focusing on both inequality and poverty and their interaction. We replicate previous results showing that inequality has a negative impact on growth. However, we show that when we account for both inequality and poverty, the negative effect of inequality on growth appears to be concentrated amongst countries with high poverty. This would argue for policies targeted towards alleviating poverty even if they have no effect on inequality.

U2 - 10.1016/j.inteco.2019.11.005

DO - 10.1016/j.inteco.2019.11.005

M3 - Article

SN - 2110-7017

VL - 161

SP - 83

EP - 99

JO - International Economics

JF - International Economics

ER -

Inequality, poverty and economic growth

Abstract

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