Economic Growth and Income Disparity in BRIC: Theory and Empirical Evidence - Rilegato

Das, Monica; Das, Sandwip Kumar

Rilegato

ISBN 10: 981441591X ISBN 13: 9789814415910

Casa editrice: World Scientific Pub Co Inc, 2013

Riassunto

The recent interest in the development processes of BRIC countries (Brazil, Russia, India and China) has been triggered by their high growth performance. But their political and social background is entirely different. We have traced the economic history of BRIC countries to understand their economic and social institutions. The only common theme in this growth story is the high levels of income disparities and poverty that is observed even during the high growth decades. In order to understand the interaction between economic growth, income inequality and poverty, we have developed a theoretical framework that incorporates a mechanism of uniform income transfers in a growth model, where economic growth is the result of accumulation. Income transfer mechanism operates in all countries in the form of a progressive taxation system, pension funds, government's anti-poverty programs, employment guarantee schemes, land reforms, etc.It is not necessarily true that such income transfers would invariably reduce growth rates. The relationship between economic growth and income inequality depends on certain initial conditions. For instance, if the initial distribution of income is fairly unequal, growth induces greater equality. On the other hand, at high levels of per capita incomes, growth may raise inequality if the initial level of inequality is not very high. This brings a new dimension in the 'inverted-U hypothesis'. Based on econometric modelingof growth-inequality nexus, we have looked at the patterns of growth and economic disparities in BRIC countries over long periods of time, including the recent high growth phase. Two inequality measures applied in this study are Gini Coefficient and Theil's entropy measures, depending on data availability. Attempts have been made to identify the sources of inequality and the role of initial conditions in determining the patterns of development. Each country's experience is unique, but the theoretical model goes a long way to explain their growth-inequality experience.

Dettagli dell'edizione

• Editore: World Scientific Pub Co Inc
• Data di pubblicazione: 2013
• Lingua: Inglese
• ISBN 10: 981441591X
• ISBN 13: 9789814415910
• Rilegatura: Copertina rigida
• Numero di pagine: 153
• Contatto del produttore: non disponibile
• Persona responsabile: GPSR Kontakt; gpsr@libri.de; ; Europaallee 1; Bad Hersfeld; 36244; Germania