Abstract
Income distribution affects growth through its effect on the accumulation of productive factors. This relationship is analyzed in the present paper in a cross section of 35 developing countries. A simple structural model shows that income inequality affects growth negatively through its negative impact on the accumulation of human capital. However, it also affects growth positively through a positive impact on the accumulation of physical capital. The overall effect of income inequality upon growth is significantly negative. Human capital is at the center of a virtuous circle whereby growth and income equality are self-reinforcing phenomena. The significance of income distribution in equations of growth and factor accumulation reduces only marginally the significance of the usual regional dummy variables. -from English summary
| Translated title of the contribution | Growth, distribution and human resources: international comparison and regional characteristics |
|---|---|
| Original language | French |
| Pages (from-to) | 3-35 |
| Number of pages | 33 |
| Journal | Revue d'Economie du Developpement |
| Volume | 93 |
| Issue number | 4 |
| DOIs | |
| State | Published - 1993 |
ASJC Scopus subject areas
- Development
- Economics, Econometrics and Finance(all)