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Distribution and Development in Developing Countries: An Empirical Assessment - Distribuzione e crescita nei paesi in via di sviluppo: una valutazione empirica

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This paper examines the effect of income distribution on growth in developing countries. Based on data from the World Bank and the United Nations Development Programme, we use a sample of twenty-eight developing economies and find that income distribution does not affect growth in these countries, unlike the results of previous studies by Alesina and Rodrik (1994). Neither do we find that the level of democracy in a country has a statistically significant impact on growth. We observe that the coefficient estimate of one independent variable does not have the anticipated sign due to the severe degree of multicollinearity among statistically significant explanatory variables. Regression results show that the total fertility rate, the initial level of per capita GDP, and the ratio of female to male literacy rate, taken together, do linearly influence growth in developing economies. Statistical results of such empirical examination will assist governments in those countries identify areas that need to be improved upon in order to stimulate economic development. - Questo lavoro studia l’effetto della distribuzione del reddito sulla crescita nei paesi in via di sviluppo. Utilizzando i dati della Banca Mondiale e del Programma di Sviluppo delle Nazioni Unite, è stato considerato un campione di 28 Pvs: i risultati evidenziano che la distribuzione del reddito non influenza la crescita in questi paesi, contrariamente a quanto ottenuto negli studi di Alesina e Rodrik (1994). Né è stato riscontrato che il livello di democrazia di un paese ha un effetto statisticamente significativo sulla crescita. Si osserva anche che la stima del coefficiente di una variabile indipendente non ha il segno previsto a causa dell’elevato grado di multicollinearità tra le variabili esplicative statisticamente significative. I risultati dell’analisi di regressione mostrano invece che le variabili tasso di fertilità totale, livello iniziale di PIL procapite e rapporto tra i tassi di alfabetizzazione donna/uomo, se considerati contemporaneamente, effettivamente influenzano la crescita delle economie in via di sviluppo. I risultati statistici di queste valutazioni empiriche saranno d’aiuto ai governi di quei paesi nell’identificare le aree che necessitano miglioramenti al fine di stimolare lo sviluppo economico

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  • Dao, Minh Quang, 2010. "Distribution and Development in Developing Countries: An Empirical Assessment - Distribuzione e crescita nei paesi in via di sviluppo: una valutazione empirica," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 63(2), pages 169-178.
    • Handle: RePEc:ris:ecoint:0592
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    1. Bertola, Giuseppe, 1993. "Factor Shares and Savings in Endogenous Growth," American Economic Review, American Economic Association, vol. 83(5), pages 1184-1198, December.
    2. Alberto Alesina & Dani Rodrik, 1994. "Distributive Politics and Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(2), pages 465-490.
    3. Torsten Persson and Guido Tabellini., 1991. "Is Inequality Harmful for Growth? Theory and Evidence," Economics Working Papers 91-155, University of California at Berkeley.
    4. Oded Galor & Joseph Zeira, 1993. "Income Distribution and Macroeconomics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(1), pages 35-52.
    5. Abhijit V. Banerjee & Andrew F. Newman, 1991. "Risk-Bearing and the Theory of Income Distribution," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 211-235.
    6. Roberto Perotti, 1993. "Political Equilibrium, Income Distribution, and Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(4), pages 755-776.
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    More about this item

    Keywords

    Total Fertility Rate; Per Capita GDP; Female to Male Literacy Ratio; Income Inequality; Developing Countries; Index of Democracy; Primary Enrollment Rate;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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