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Growth and Distribution: A Guyana Case Study

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  • Constantine, Collin

Abstract

The principal contribution of this article is that it provides evidence of recent trends of inequality in Guyana, but the article goes beyond this and describes the evolution of inequality since 1974 to 2013. This is done within a Kaleckian framework to derive profit and wage rates, since recent Gini coefficients data are absent. The evidence implies that inequality is on the rise. The article argues that the mining and quarrying sector regulates Guyana’s growth performance and ignites growth in the non-tradable services sector, which are characterized by low-wage-low-employment opportunities. Thus, a greater share of the gains in income in these sectors goes to profits when growth is sustained.

Suggested Citation

  • Constantine, Collin, 2014. "Growth and Distribution: A Guyana Case Study," MPRA Paper 58882, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:58882
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    References listed on IDEAS

    as
    1. Thomas Herndon & Michael Ash & Robert Pollin, 2014. "Does high public debt consistently stifle economic growth? A critique of Reinhart and Rogoff," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 38(2), pages 257-279.
    2. John Gafar, 2004. "Income distribution, inequality, and poverty during economic reforms in Guyana," Journal of Developing Areas, Tennessee State University, College of Business, vol. 38(1), pages 55-77, September.
    3. Carmen M. Reinhart & Kenneth S. Rogoff, 2010. "Growth in a Time of Debt," American Economic Review, American Economic Association, vol. 100(2), pages 573-578, May.
    4. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    5. Khemraj, Tarron, 2007. "The missing link: the finance-growth nexus and the Guyanese growth stagnation," MPRA Paper 16342, University Library of Munich, Germany.
    6. Judith Gold & Mr. Ruben V Atoyan & Miss Cornelia Staritz, 2007. "Guyana: Why Has Growth Stopped? An Empirical Study on the Stagnation of Economic Growth," IMF Working Papers 2007/086, International Monetary Fund.
    7. Khemraj, Tarron, 2013. "Bi-communalism and the economic origins of democracy: a case study," MPRA Paper 47288, University Library of Munich, Germany.
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    More about this item

    Keywords

    inequality; Kaleckian framework; Guyana; growth;
    All these keywords.

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution

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