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The Effects of Income Inequality on Economic Growth

Ciula, Raffaele (2005): The Effects of Income Inequality on Economic Growth.

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Abstract

This empirical research paper applies cross-section technique for a sample of 52 countries within 1980, 1985 and 1990 to investigate the relationships between income inequality and economic growth and to test the hypothesis that income distribution affects growth indirectly through the channels of fertility, investment and education. Moreover it intends to give a first insight into the relationship between Human Development Index and growth of per capita GDP to understand if a widening in some capabilities can foster economic development. Finally this empirical research will turn to study the specification of the model, in order to find out if it is well behaved.

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