Income Inequality and Gross Domestic Private Product Growth in Different Groups of Countries



Year of publication 2013
Type Article in Proceedings
Conference Proceedings of the 31st International Conference Mathematical Methods in Economics 2013
MU Faculty or unit

Faculty of Economics and Administration

Field Economy
Keywords economic growth; Gini index; government consumption
Description The aim of this paper is to analyse the relationship between economic growth, government expenditure and income inequality. Most studies suggest that there is a weak or non-existent relationship between growth and income inequality. We use Gross domestic private product growth instead of GDP growth. The analysis was performed by employing an OLS model for 73 countries. The clustering was used to classify data set into 5 subsets. A positive relationship between the GDPP growth and income inequality was found. This relationship is strong for developing and transitional economies and weak for the developed countries including the G7.
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