966
Serial number: 04/2015
Author(s): G.Tahirova, R.Rahmanov
Language: Azerbaijani
Date: 2015
Abstract: This paper aims to determine the channels through which income inequality affects economic growth using the fixed effects, random effects, and GMM techniques. The analysis covers developed, developing and CIS countries over the period 1980-2010. Our estimation results show that in the developing countries, the significant channel is government expenditure; in the developing countries, the significant channels are investment and human capital; in the CIS countries, the significant channels are government expenditure and investment. For all country groups, the relationship between income inequality and economic growth is negative.
Key words: income inequality, economic growth, institutions
JEL classification: O11, O43, D31,D33, H30, H31
