IJSSER

Title: Income Inequality and its Effect on Economic Growth in Peru
Authors: Marco Adriano Gomero Obregon
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Marco Adriano Gomero Obregon International Baccalaureate Bilingual Diploma Graduate
MLA 8 Gomero, Marco. "Income Inequality and its Effect on Economic Growth in Peru." Int. j. of Social Science and Economic Research, vol. 9, no. 10, Oct. 2024, pp. 4114-4123, doi.org/10.46609/IJSSER.2024.v09i10.008. Accessed Oct. 2024. APA 6 Gomero, M. (2024, October). Income Inequality and its Effect on Economic Growth in Peru. Int. j. of Social Science and Economic Research, 9(10), 4114-4123. Retrieved from https://doi.org/10.46609/IJSSER.2024.v09i10.008 Chicago Gomero, Marco. "Income Inequality and its Effect on Economic Growth in Peru." Int. j. of Social Science and Economic Research 9, no. 10 (October 2024): 4114-4123. Accessed October, 2024. https://doi.org/10.46609/IJSSER.2024.v09i10.008.
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ABSTRACT: This research explores the relationship between income inequality and economic growth in Peru, focusing on the decade from 2007 to 2017. Using the Gini coefficient as a measure of income inequality and GDP annual growth rates as an indicator of economic performance, this study analyses the impact of wealth disparities on Peru's economic trajectory. Peru, with its rapidly growing economy, provides a compelling case to examine whether economic expansion leads to reduced inequality or exacerbates social disparities. The results reveal that, while early periods of strong economic growth coincide with reductions in inequality, this trend stagnates in later years, suggesting that growth alone may not be sufficient to further alleviate income disparities and vice versa. The study highlights the importance of government interventions, social safety nets, and redistributive policies in ensuring that the benefits of economic growth are equitably across different socioeconomic groups. The findings challenge the assumption that economic growth automatically reduces inequality, emphasizing the need for targeted policies in developing countries. This research contributes to the broader understanding of the complex dynamics between income inequality and economic growth, offering policy recommendations aimed at fostering a more equitable distribution of wealth in Peru.

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