Contents of the volume

2017, Volume 70 - Issue 4

ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 20 October 2017

SECULAR STAGNATION: IS IT IN THE DATA?

Dimitris Kirikos

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INCOME INEQUALITY AND GROWTH: NEW INSIGHTS FROM ITALY

Bernard Njindan Iyke, Sin-Yu HO

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FOREIGN DIRECT INVESTMENTS, EXPORTS, UNEMPLOYMENT AND ECONOMIC GROWTH IN THE NEW EU MEMBERS – A PANEL DATA APPROACH

Nicholaos Dritsakis, Pavlos Stamatiou

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IS REAL DEPRECIATION OR MORE GOVERNMENT DEBT CONTRACTIONARY? THE CASE OF ROMANIA

Yu Hsing

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HEDGE FUNDS: A POLITICAL AND ECONOMIC ANALYSIS

Cameron J. Gable, Shalendra Sharma

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REASSESSING THE SUSTAINABILITY OF PUBLIC FINANCES IN POLAND: EVIDENCE FROM A MULTICOINTEGRATION APPROACH

Marco Tronzano

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THE ASSOCIATION BETWEEN INCOME INEQUALITY AND HEALTH IN ADVANCED COUNTRIES

Stephen Foreman

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Bernard Njindan IYKE, Deakin University, Melbourne, Victoria, Australia

Co-authors

Sin-Yu HO, University of South Africa, Pretoria, South Africa

Income Inequality and Growth: New Insights from Italy

Pages

419-442

Abstract

This paper investigates the impact of income inequality on economic growth in Italy during the period of 1967 to 2012. Specifically, using a technique that allows us to sort out long-run impacts from short-run impacts, we investigate whether income inequality benefits or harms growth, after controlling for human capital, labour, physical capital and inflation within an augmented growth model. Amid the existing debatable theoretical and empirical studies, our results suggest that income inequality has a negative and significant impact on growth in the long run. The negative impact of income inequality on growth still exists in the short run. However, the coefficient becomes insignificant. Overall, we gather that inequality hurts growth in the country. Based on this finding, we provide some policy implications.

JEL classification

D63, O15, O47, O52

Keywords

Income Inequality, Economic Growth, Italy

Index

  1. Introduction
  2. Literature review
  3. Methodology
  4. Empirical results
  5. Conclusion

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