Effects of the income inequality on the economic growth in Brazil: A nonlinear analysis
Abstract
This paper discusses how the income inequality in a country like Brazil can affect the economic growth rates. After showing the main models that analyze the effects of income differences on growth, the article applies non-linear methods to panel data to detect the true relation between these variables in Brazil. After rebuilding these tests for the case of Brazil, it shows that an increase in the level of economic inequality has a significant negative relationship with the subsequent economic growth. It is also possible to conclude that changes in inequality, in any direction, are associated with a reduced growth in the next period.
Key words: Inequality income, Economic growth, Panel data, Non-linearity.
Downloads
Published
Issue
Section
License
I grant the journal Perspectiva Econômica the first publication of my article, licensed under Creative Commons Attribution license (which allows sharing of work, recognition of authorship and initial publication in this journal).
I confirm that my article is not being submitted to another publication and has not been published in its entirely on another journal. I take full responsibility for its originality and I will also claim responsibility for charges from claims by third parties concerning the authorship of the article.
I also agree that the manuscript will be submitted according to the journal’s publication rules described above.
