Growth quality and income inequality: cross-country analysis
Research Article
Acknowledgments
This article has been funded by the Science Committee of the Ministry of Education and Science of the Republic of Kazakhstan in the framework of the research project «The rate and quality of growth of national economies: determination in the era of neo-globalization» (Grant No. АР08856289)
How to Cite
Khusainov B.D., Kaimoldina S.A., Nussupov A.I. Growth quality and income inequality: cross-country analysis. Living Standards of the Population in the Regions of Russia. 2021. Vol. 17. No. 4. P. 454-461. DOI: https://doi.org/10.19181/lsprr.2021.17.4.3 (in Russ.).
Abstract
The article is devoted to the construction and implementation of an econometric model for quantitative assessment of the impact of cross-country, international, and national income inequality on the dynamics and quality of growth of four groups of countries with different levels of development. A substantial analysis of numerous Russian and foreign research that discover the dynamics and quality of growth was carried out. On this basis, we conclude that income inequality is an important characteristic of the quality of growth of both the national and global economies. To study the relationship between inequality and economic growth, the research uses two concepts proposed by the World Bank – cross-country and international inequality. The distinction of this study from all other known works is not in identifying the genesis of the phenomenon of «inequality», but in focusing on the development of concepts of inequality between countries and quantity assessment of their impact on the growth of economies with different income levels (high, above average, below average and low). This development contributes to the expansion of the research landscape that analyses the relationship between economic growth and inequality. The implementation of the constructed model of cross-country regression confirmed the assumption on the negative impact of three types of inequality on countries with different income levels. At that, the degree of their influence for four groups of countries is shown with a different time lag. The statistically significant empirical results are the convincing scientific basis for evidence-based policy while developing an adequate economic policy by national governments, especially in modern conditions
Keywords:
quality of growth, global economy, income inequality, national economy, inclusive growth, Gini index, econometric model
References
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3. Piketty T. Capital in the Twenty-First century [Russ. Ed.: Kapital v XXI veke] Transl. from. Eng. by A. Dunaev. Moscow: AD Marginem Press. 2016. 592 p. (In Russ.).
4. Stiglitz J. People, Power, and Profits: Progressive Capitalism for an Age of Discontent [Russ. ed.: Lyudi, vlast' i pribyl': Progressivnyj kapitalizm v epohu massovogo nedovol'stva] Transl. from. Eng. by V. Ionov. Moscow: Al'pina Pablisher. 2020. 430 p. (In Russ.).
5. Stiglitz J. The Price of Inequality: How Today's Divided Society Endangers Our Future [Russ. ed.: Cena neravenstva. Chem rassloenie obshchestva grozit nashemu budushchemu] Transl. from. Eng. by E. Rozhdestvenskaya. Moscow: Eksmo. 2015. 508 p. (In Russ.).
6. Tenyakov I.M. Approaches to assessing the quality of economic growth. Questions of political economy. 2016. No. 4. P. 61-73. (In Russ.).
7. Khusainov B.D., Kaimoldina Sh.A., Nusupov A.I. Inequality as a determinant of the quality of growth of national economies. Interdisciplinary Research in Economics: materials of the IV Russian Economic Congress. Moscow. 2020. P. 49-54. (In Russ.).
8. Alam A., Murthi M., Yemtsov R., Murrugarra E., Dudwick N., Hamilton E., Tiongson E. Growth, Poverty and Inequality: Eastern Europe and the Former Soviet Union. World Bank Group. Washington, D.C. 2005. 302 p. DOI: 10.1596/978-0-8213-6193-1.
9. Equity and Development. World Development Report. World Bank Group. Washington, D.C. 2006. 320 p.
10. Kuznets S. Economic growth and Income inequality. American Economic Review. 1955. Vol. 45. No. 1. P.1-28.
11. López R., Thomas V., Yan W. The Quality of Growth: Fiscal Policies for Better Results. World Bank Group. Washington, D.C. 2008. 133 p.
12. Milanovic B. Global Inequality and the Global Inequality Extraction Ratio: The Story of the Past Two Centuries. Explorations in Economic History. 2009. Vol. 48. No. 4. P. 494-506.
13. Milanovic B. Global Inequality: From Class to Location, from Proletarians to Migrants. Global Policy. 2012. Vol. 3. No. 2. P. 125-134.
14. Milanovic B. Worlds Apart: Measuring International and Global Inequality. Princeton University Press. 2005. 227 p.
15. Thomas V., Dailimi M., Dhareshwar A., Kaufmann D., Kishor N., Lopez R., Wang Y. The Quality of Growth. World Bank Group. Washington, D.C. 2000. 23 p. DOI: 10.1596/0-1952-1593-1.
Article
Received: 25.08.2021
Accepted: 03.12.2021
Citation Formats
Other cite formats:
APA
Khusainov, B. D., Kaimoldina, S. A., & Nussupov, A. I. (2021). Growth quality and income inequality: cross-country analysis. Living Standards of the Population in the Regions of Russia, 17(4), 454-461. https://doi.org/10.19181/lsprr.2021.17.4.3
Section
ECONOMIC RESEARCH
