September 10, 2025Economic and political weekly/Economic & political weekly

wl-7916-Relationship between Income Inequality and Economic Growth: Re-examination

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PMPriyanka Muchahary MSManish Kumar SharmaIndian Institute of Technology Kharagpur

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Implication

Observational analysis shows a positive relationship between income inequality and economic growth overall, indicating a nuanced impact across different income levels.

Key Points

A significant positive relationship exists between income inequality and economic growth when viewed globally.
For high and lower-middle income countries, the relationship is inverted, suggesting a complex interaction based on income levels.
Multiple statistical techniques, such as fixed effects and GMM, were employed to analyze relationships over 31 years.
The findings highlight the essential role of education in promoting economic growth alongside income inequality.

Cite This Study

Muchahary et al. (2025) studied this question.

synapsesocial.com/papers/68c243acb210217d647a783e https://doi.org/10.71279/epw.v60i25.38677

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Implication

Observational analysis shows a positive relationship between income inequality and economic growth overall, indicating a nuanced impact across different income levels.

wl-7916-Relationship between Income Inequality and Economic Growth: Re-examination

Discussion

Member takes

Implication

Key Points

Cite This Study

wl-7916-Relationship between Income Inequality and Economic Growth: Re-examination

Discussion

Member takes

Implication

Key Points

Cite This Study

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Also Consider