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The Relationship between Inequality and Growth: Evidence from New Data

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  • Costanza Naguib

    (Università della Svizzera italiana)

Abstract

Summary The relationship between inequality and growth has attracted a lot of attention in the previous literature. Estimation of this relationship may be biased by simultaneity, omitted variables and measurement error. The present paper contributes to the existing work by introducing the wealth Gini coefficient as a new inequality measure. The most reliable and recent data on income inequality are used for estimation. We employ the Arellano-Bond GMM estimation technique and we find that there seems to be a positive relationship between wealth inequality and real per capita GDP growth, but this relationship is not robust to different model specifications.

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  • Costanza Naguib, 2017. "The Relationship between Inequality and Growth: Evidence from New Data," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 153(3), pages 183-225, July.
    • Handle: RePEc:spr:sjecst:v:153:y:2017:i:3:d:10.1007_bf03399507
    DOI: 10.1007/BF03399507
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    Cited by:

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    2. Aggarwal, Aradhna, 2019. "How has globalisation affected the economic growth, structural change and poverty reduction linkages? Insights from international comparisons," MERIT Working Papers 2019-015, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Mduduzi Biyase & Talent Zwane & Precious Mncayi & Mokgadi Maleka, 2023. "Do Technological Innovation and Financial Development Affect Inequality? Evidence from BRICS Countries," IJFS, MDPI, vol. 11(1), pages 1-18, March.
    4. Ademola Obafemi Young, 2019. "Growth Impacts of Income Inequality: Empirical Evidence From Nigeria," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(3), pages 226-262, December.
    5. Michele Costa & Flavio Delbono & Francesco Linguiti, 2021. "Cooperative Movement and Prosperity across Italian Regions," Working Papers wp1161, Dipartimento Scienze Economiche, Universita' di Bologna.
    6. Kelly Kirkland & Paul a M van Lange & Drew Gorenz & Khandis Blake & Catherine E Amiot & Liisi Ausmees & Peter Baguma & Oumar Barry & Maja Becker & Michal Bilewicz & Watcharaporn Boonyasiriwat & Robert, 2024. "High economic inequality is linked to greater moralization," Post-Print hal-04670509, HAL.
    7. Policardo, Laura & Sanchez Carrera, Edgar J., 2024. "Wealth inequality and economic growth: Evidence from the US and France," Socio-Economic Planning Sciences, Elsevier, vol. 92(C).
    8. Michele Costa & Flavio Delbono & Francesco Linguiti, 2023. "Cooperative movement and widespread prosperity across Italian regions," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(2), pages 475-494, June.

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    More about this item

    Keywords

    D30; O40;

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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