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Distribution and growth: cross-country evidence

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  • Kang Park

Abstract

An endogenous growth model is presented to examine the determinants of economic growth and income distribution and their relationship. Three major findings from a cross-country analysis of 45 countries are: (1) a higher level of educational attainment of the labour force has an equalizing effect on income distribution, while the larger the dispersion of schooling among the labour force, the greater the income inequality; (2) human capital investment as well as physical capital investment are significant factors contributing to economic growth; and (3) income inequality has a negative effect on economic growth, supporting the existence of a complementary relationship between equity and growth.

Suggested Citation

  • Kang Park, 1998. "Distribution and growth: cross-country evidence," Applied Economics, Taylor & Francis Journals, vol. 30(7), pages 943-949.
    • Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:943-949
    DOI: 10.1080/000368498325372
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    Cited by:

    1. Sato, Sumie & Fukushige, Mototsugu, 2009. "Globalization and economic inequality in the short and long run: The case of South Korea 1975-1995," Journal of Asian Economics, Elsevier, vol. 20(1), pages 62-68, January.
    2. Ghosh, sudeshna, 2017. "Education Attainment Forecasting and Economic Inequality United States," MPRA Paper 89712, University Library of Munich, Germany.
    3. Mr. Alfredo Cuevas, 2001. "Short- and Long-Term Poverty and Social Policy in a “Snakes and Ladders” Model of Growth," IMF Working Papers 2001/172, International Monetary Fund.
    4. Ziesemer, Thomas, 2011. "What Changes Gini Coefficients of Education? On the dynamic interaction between education, its distribution and growth," MERIT Working Papers 2011-053, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Digdowiseiso, Kumba, 2009. "Education inequality, economic growth, and income inequality: Evidence from Indonesia, 1996-2005," MPRA Paper 17792, University Library of Munich, Germany.
    6. Dipanwita Sarkar, 2007. "The role of human capital in economic growth revisited," Applied Economics Letters, Taylor & Francis Journals, vol. 14(6), pages 419-423.
    7. Jinyoung Hwang & Kun-Oh Jung, 2006. "A cross-country study on income distribution and school enrolment," Applied Economics Letters, Taylor & Francis Journals, vol. 13(11), pages 723-726.
    8. Pak Hung Mo, 2000. "Income Inequality and Economic Growth," Kyklos, Wiley Blackwell, vol. 53(3), pages 293-315, August.

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