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“The Importance of Income Inequality at the Top End of the Distribution as Opposed to the Bottom End as Determinant of Growth”
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Government.
2017 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

The aim of this study was to analyze whether income inequality is a determinant of national growth and whether this influence is different when income inequality in the upper and the lower decile of income distribution are separately examined. According to the statistical analysis that was held, income inequality was found to have some statistically significant connection with the national economic growth of selected OECD countries, but only in the long run. Moreover, the research findings indicate that when a distinction is made between top-end and bottom-end income inequality, top-end inequality has a positive effect on growth, while bottom-end inequality has a negative effect. Investment and fertility rate were not found to have a statistically significant effect on growth. The above findings were evident in all four periods that were studied. The results imply that states in OECD countries, as well as countries not belonging to this group, need to pay heavy attention to bottom-end income inequality, as a means of controlling and fostering their growth potential, while at the same time leaving top-end inequalities, which not only do not undermine growth, but also drive it. Future researchers are encouraged to conduct the same research with other countries as well, especially developing ones, while also including in the research other factors moderating the effects of income inequality in growth. 

Place, publisher, year, edition, pages
2017. , p. 35
Keyword [en]
Income Inequality, National Growth, Top-end Inequality, Bottom-end Inequality, Investment, Inflation, Fertility Rate
National Category
Political Science (excluding Public Administration Studies and Globalisation Studies) Globalisation Studies
Identifiers
URN: urn:nbn:se:uu:diva-314860OAI: oai:DiVA.org:uu-314860DiVA, id: diva2:1071959
Subject / course
Development Studies
Educational program
Master Programme in Politics and International Studies
Presentation
2017-01-13, 4219A, Badhuset, Uppsala, 18:04 (English)
Supervisors
Examiners
Available from: 2017-02-08 Created: 2017-02-06 Last updated: 2018-01-13Bibliographically approved

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Income Inequality and Growth(1095 kB)200 downloads
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Kyroglou, George
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CiteExportLink to record
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Citation style
  • apa
  • ieee
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Language
  • de-DE
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  • nn-NO
  • nn-NB
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  • Other locale
More languages
Output format
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