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Inequality, Economic Growth and Structural Change: Theoretical Links and Evidence from Latin American Countries

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  • Mario D. Tello

    ( Departamento de Economía de la Pontificia Universidad Católica del Perú)

Abstract

This paper summarizes the theoretical literature of the connections between inequality, economic growth and structural change and presents evidence of these connections for a sample of twelve Latin American countries in period 1980-2011. This suggests that the low degree of structural change has caused a statistical impact on inequality and economic growth in only four and one countries respectively. Consequently, this result rejects the conjecture that structural change has been growth reducing in Latin America. The absence of a statistical causal relationship from structural change to economic growth may be because sectoral labor reallocation does not take into account informal activities. On the other hand, coverage of the causal effects of growth and/or inequality on structural change has been greater than the respective effects of structural change on inequality and/or economic growth. Seven Latin American countries experienced those causal effects. JEL Classification-JEL: O54, O12

Suggested Citation

  • Mario D. Tello, 2015. "Inequality, Economic Growth and Structural Change: Theoretical Links and Evidence from Latin American Countries," Documentos de Trabajo / Working Papers 2015-402, Departamento de Economía - Pontificia Universidad Católica del Perú.
    • Handle: RePEc:pcp:pucwps:wp00402
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    File URL: http://repositorio.pucp.edu.pe/index/handle/123456789/52505
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    Cited by:

    1. Cecilia Garavito, 2015. "Evolución del mercado de trabajo doméstico remunerado en el Perú," Documentos de Trabajo / Working Papers 2015-407, Departamento de Economía - Pontificia Universidad Católica del Perú.

    More about this item

    Keywords

    Structural change; inequality; economic growth;
    All these keywords.

    JEL classification:

    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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