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Title:
ANALYZING THE EFFECT OF INCOME INEQUALITY ON ECONOMIC GROWTH

Authors:
Gourang Goyal

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Gourang Goyal
Satyawati College, University of Delhi

MLA 8
Goyal, Gourang. "ANALYZING THE EFFECT OF INCOME INEQUALITY ON ECONOMIC GROWTH." nt. j. of Social Science and Economic Research, vol. 6, no. 6, June 2021, pp. 1743-1755, doi.org/10.46609/IJSSER.2021.v06i06.008. Accessed June 2021.
APA 6
Goyal, G. (2021, June). ANALYZING THE EFFECT OF INCOME INEQUALITY ON ECONOMIC GROWTH. nt. j. of Social Science and Economic Research, 6(6), 1743-1755. Retrieved from doi.org/10.46609/IJSSER.2021.v06i06.008
Chicago
Goyal, Gourang. "ANALYZING THE EFFECT OF INCOME INEQUALITY ON ECONOMIC GROWTH." nt. j. of Social Science and Economic Research 6, no. 6 (June 2021), 1743-1755. Accessed June, 2021. doi.org/10.46609/IJSSER.2021.v06i06.008.

References

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[2]. (IMF,2021) https://www.imf.org/en/Publications/WEO/Issues/2021/01/26/2021-world-economic-outlook- update
[3]. (IMF Library) https://www.elibrary.imf.org/view/IMF006/22594-9781513555188/22594- 9781513555188/22594-9781513555188_A001.xml?language=en
[4]. (Kuznets, 1995) https://www.jstor.org/stable/1811581?seq=1
[5]. (Barro, 2000) https://scholar.harvard.edu/files/barro/files/p_inequalitygrw.pdf
[6]. (Li, 1998) http://documents1.worldbank.org/curated/en/892521468762914086/pdf/multi0page.pdf
[7]. (Forbes, 2000) https://www.aeaweb.org/articles?id=10.1257/aer.90.4.869
[8]. (Shin, 2012) https://econpapers.repec.org/article/eeeecmode/v_3a29_3ay_3a2012_3ai_3a5_3ap_3a2049- 2057.htm
[9]. (World Bank, 2011) https://databank.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG/1ff4a498/Popular- Indicators
[10]. (United Nations Human Development Report, 2011) http://www.hdr.undp.org/en/indicators/137506

Abstract:
There has been a common assumption that inequality and growth have a negative relationship that is when inequality decreases growth increases and vice-versa. This paper aims to examine the effect of income inequality on economic growth and test the common assumption using simple and multiple regression analysis. The study was conducted using data from 74 countries from the year 2011. Previous literature has produced mixed results, with some research finding a positive correlation and some finding a negative correlation. The country’s state of development was also considered as outlined by the dummy variable used in the analysis. The findings of this paper depict a positive relationship between inequality and growth according to the results of the regression analysis.

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